Employees could save more and take longer to withdraw under Bill passed by House

Published: Mon, 04/04/22

Dear ,

Things just got a little sweeter for employees as the House just voted to approve a bipartisan bill that allows Americans to save more money in their 401(k)s and wait a little longer before withdrawing their retirement savings.

The Bill, called the Securing a Strong Retirement Act of 2022 (H.R. 2954), was passed on March 29. It will make it easier for businesses to offer their employees tax-qualified retirement savings plans and for individuals to participate in retirement plans and grow their tax-preferred savings.

Here are some of the highlights of the Bill:

It raises the age for taking minimum required distributions, effectively making it possible for retirees to delay withdrawals
It allows for more employees to participate in employer-sponsored retirement plans
It will allow companies to offer a small cash bonus for employees who agree to sign up.

This new legislation will now go to Senate, but the overwhelming support from the House took it closer to becoming law. If you are employed, you may want to take advantage of this, and if you are an employer, this is something you can offer your employees. Call my office at (202) 618-1297 if you have any burning questions about this.

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Hey Entrepreneur! I am Folasade Ayegbusi. I am an Enrolled Agent, Accountant, Ex-insurance Broker, Speaker, and Small Business Growth Strategist. Additionally, I am a Mother, and Entrepreneur.

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