On May 5, 2021, the House Ways & Means Committee (“Committee”) approved the “Securing a Strong Retirement Act of 2021” (H.R. 2954, or the “SECURE Act 2.0”) by a unanimous voice vote, with no substantive amendments offered during its markup. The SECURE Act 2.0 has since moved on to the full House, where it has rallied considerable bipartisan support and is expected to pass without major interference either as a standalone or as part of broader legislation (although modifications may be made as the bill works its way through Congress).
Assuming the SECURE Act 2.0 ultimately becomes law in substantially similar form, the proposed retirement reform legislation would enhance the long-term financial security of millions of Americans by providing wider access to retirement savings. And while many of the provisions would apply to plan years beginning after December 31, 2022, certain provisions would apply after December 31, 2021. Accordingly, employers, plan sponsors and administrators should familiarize themselves with the anticipated SECURE Act 2.0 as soon as possible, to ensure a smooth and informed transition towards expanded eligibility, flexibility, and retirement plan incentivization