House Ways and Means Committee Chairman Richard Neal (D-Mass.) told reporters this week he plans to reintroduce legislation that would boost the required minimum distribution (RMD) age from 72 to 75 and increase catch-up retirement provisions for those over age 60.

Neal said he plans to reintroduce the Securing a Strong Retirement Act of 2020 (SSRA) to help Americans strengthen their retirement savings at a time when “long-term financial security has taken on an even greater importance.” He also acknowledged the bill will contain a provision to increase the RMD age.

“Increasing the RMD age from age 72 to age 75 is a provision in SSRA that is especially timely,” said Judi Carsud, assistant vice president for government relations at the National Association for Insurance Financial Advisors (NAIFA). “The Covid-19 pandemic has had negative consequences for retirement savings account balances. Some participants have had to stop making contributions, take emergency withdrawals or cope with fluctuations in investment markets.”

According to Kathleen Coulombe, vice president for retirement security and principal deputy for federal relations at the American Council of Life Insurers (ACLI), said, “The bill’s key provisions ensure those close to or in retirement can continue to save and better manage their retirement savings accounts. ... These changes help savers address the financial challenges of the COVID-19 pandemic.”

The Securing a Strong Retirement Act of 2020, commonly called Secure Act 2.0, builds on the Setting Every Community Up for Retirement Enhancement (Secure) Act of 2019, which increased the RMD age from 70½ to 72.

“Increasing the required minimum distribution age from 72 to 75 will give retirement savers more time to make up shortfalls and meet their retirement objectives,” Coulombe said.

Since the time that the RMD age was originally set at age 70½, people have been living longer and working longer. Also, many Americans find themselves behind on their retirement savings.

Neal was elected chairman of the House Ways and Means Committee on Dec. 3. Neal and ranking member Kevin Brady, (R-Texas), first introduced the Secure Act 2.0 on Oct. 27.

Neal said these are among his other priorities in the new Congress:

• Implementing automatic IRAs and 401(k)s.
• Requiring automatic enrollment in 401(k)-type plans.
• Increasing the Savers Credit to $1,500 per year ($3,000 for married filing jointly).
• Increasing the start-up retirement plan tax credit from 50% of administrative costs to 100% for businesses with 50 or less employees and extend the credit to multiple employer plans.
• Protect Social Security and Social Security benefits, especially for low-income workers.

“Chairman Neal and ranking member Brady are extraordinary champions for workers saving for retirement. Their proposal reflects many important bipartisan priorities, and we look forward to continuing to work with them to strengthen Americans’ financial footing,” ACLI President and CEO Susan Neely said.