As Congress lastly pushed by way of its $1.7 trillion spending invoice on the final minute, it additionally concluded one other saga: the months-long quest to cross Safe 2.0.
The sweeping retirement laws, pieced collectively from a number of completely different Senate and Home payments, had been percolating in Congress for the higher a part of a 12 months. The package deal is stuffed with widespread reforms, supported by the business and backed by a uncommon bipartisan consensus — however for months, it by no means acquired a vote.
On Friday, that lengthy wait got here to an finish with out drama or fanfare. As a substitute of giving Safe 2.0 its personal vote, lawmakers folded it into the omnibus invoice, which needed to cross with the intention to keep away from a authorities shutdown. In the meantime, most of Washington’s consideration was on the upcoming holidays, an ominous snowstorm and a speech to Congress by Ukrainian President Volodymyr Zelensky.
However even when it was denied the highlight, the brand new legislation is critical. Like its predecessor, the Safe Act of 2019, Safe 2.0 is a patchwork of small fixes that many say will make saving for retirement simpler. Amongst different measures, it bolsters auto-enrollment in 401(okay)s, raises the bounds for catch-up contributions and presents assist paying off pupil loans and emergency bills. It will not resolve each drawback, however many specialists say it is a substantial step in the fitting course.
“This can be a good invoice for the American individuals, and it is a good invoice for the retirement companies business,” mentioned Paul Richman, chief authorities and political affairs officer on the Insured Retirement Institute. “I feel it is a win-win throughout. It’s going to imply extra retirement financial savings to assist carry us nearer to addressing the looming retirement disaster that we all know is on the market.”
Listed below are 5 of the various methods Safe 2.0 will change retirement in America: