U.S. Capitol Rotunda, (Photo: Diego M.Radzinschi/ALM)

The full House passed, by a 297-120 vote on Tuesday, theyear-end spending bill, which includes the Setting Every CommunityUp for Retirement Enhancement (SECURE) Act. The SECURE Act, H.R.1994, is being billed as the most comprehensive retirement securitylegislation in more than a decade. The Senate is expected to voteon the spending bill today or Thursday, as the continuingresolution currently funding the government expires on Friday.

The American Retirement Association (ARA) expects the bill toreach President Donald Trump's desk for his signature by the end ofthe week.

"The elements of this critical legislation have enjoyedbipartisan support in both houses of Congress, and for goodreason," said Brian Graff, ARA's CEO. "American workers areconcerned about retirement, and this legislation will help expandaccess to these critical programs."

Retirement-industry lobbyists cheered the passage of the bill,which would smooth the way for more annuities in retirement plansand make it easier for small employers to band together in sharedpension plans.

The ARA noted that the SECURE Act, which mirrors the versionpassed in the House earlier this year, would:

• simplify the 401(k) safe harbor rules;
• expand portability of lifetime income options;
• allow long-term part-time workers to participate in 401(k)plans;
• allow plans adopting by the filing due date to be treated as ineffect as of close of year;
• provide a fiduciary safe harbor for selection of a lifetimeincome provider;
• modify the treatment of custodial accounts on termination of403(b) plans;
• extend the current required minimum distribution requirementsto age 72;
• require disclosures regarding lifetime income; and
• modify the nondiscrimination rules to protect longer-serviceparticipants.

The ARA also says the SECURE Act addresses "the real challengesthat small-business owners face—including costs, administrativeburdens, and increased liability for mistakes—when they considerproviding retirement benefits for their workers."

To that end, the SECURE Act "allows for unrelated employers tojoin a pooled employer plan, significantly increases thesmall-employer pension plan startup tax credit, up to $5,000, andgives business owners more flexibility to help guide theirdecision-making."

See also:

• 5 Ways the Secure Act Would Affect Retirement, 529Plans
• The Mega Backdoor Roth IRA and Other Ways toMaximize a 401(k)

TIAA applauded the bill on Tuesday for also requiring "an annualstatement that illustrates retirement-account balances as a monthlyincome stream to show participants what they may expect to see astheir 'paycheck' meant to last throughout retirement, a criticalpiece of a sound retirement plan."

With life expectancy growing, the SECURE Act "will also allowAmericans to put more money into their retirement accounts byraising the age of required minimum distributions," said RogerFerguson, TIAA's president and CEO. "Together, all of theseprovisions will significantly help Americans build their financialfutures."

Ken Bentsen, president and CEO of the Securities Industry andFinancial Markets Association (SIFMA), said in a Tuesday statementthat House passage of the bipartisan SECURE Act "willenable even more Americans to participate in our retirement systemand better prepare for a secure retirement. This legislation takesimportant steps toward enhancing the private retirement system,including common-sense provisions that would encourage smallbusinesses to offer retirement savings plans and encourageindividuals to utilize the options that are available to enjoyretirement security."

From: ThinkAdvisor