House Ways and Means Chairman Robert Neal (D-Ma.) has scheduled a committee vote on Wednesday for a bill that would revamp retirement savings account rules, including an increase in required minimum distribution ages.

The legislation, called Secure 2.1, or "Securing a Strong Retirement Act of 2021," would bump up the age for required minimum distribution (RMD) from 72 to 75, increase limits on IRA catch-up contributions, expand auto-enrollment in 401(k), 403(b) and Simple plans, and create the ability for employers to match employee student loan payments inside qualified plans, according to a copy of Neal’s bill.

The bill would create a tiered RMD age, based on an individual’s birth date. For instance, for those who turn age 72 after December 31, 2021, and age 73 before January 1, 2029, the new age for RMDs will be 73 instead of 72.

"In the case of an individual who attains age 73 after December 31, 2028, and age 74 before January 1, 2032, the applicable age is 74. In the case of an individual who attains age 74 after December 31, 2031, the applicable age is 75,” according to the bill.

The bill would also expand the $1,000 IRA catch-up limit by indexing it to cost-of-living adjustments. Higher catch-up limits would apply at age 62, 63 and 64.

Individuals would also be able to make higher catch-up contributions to qualified retirements plans, which would also be tied to the cost-of-living index. Simple plan participants who are age 62, but not age 65, would be able to contribute an additional $10,000 to a plan while qualifying individuals with Simple Plans could contribute an additional $5,000 beginning in 2021.

The bill would also allow employers to make matching contributions to a defined contribution plan for employees paying down qualified student loan payments.

In a major nod to the insurance industry, Neal’s bill would also remove required minimum distribution barriers for life annuities and allow qualifying longevity annuity contracts and insurance-dedicated exchange-traded funds to be used in qualified retirement plans.

Neal, who spoke at an Aspen Institute seminar over the weekend, said he expects as much bipartisan support for the legislation as the original Secure Act, which Congress passed in December 2019.