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Vestwell provides an overview of retirement plan related legislation making its way through Congress, including bills addressing sponsor administrative burdens and increasing non-elective contributions.
Through tax credits and other incentives, Congress is attempting to make retirement plans more accessible and promoting lifetime income solutions.The Retirement Plan Simplification and Enhancement Act (RPSEA; HR 4524) would increase the current automatic enrollment safe harbor cap and encourage employers to defer more than the automatic deferral floor of 3% of salary in the first year. It would also exempt retirement savings below $250,000 from complicated required minimum distribution rules and make it easier to take advantage of the saver’s credit. The SAVE Act increases the limit on elective deferrals under a simple IRA and permitting employers to make non-elective contributions for their employees of up to 10% of pay.
http://news.vestwell.com/newly-proposed-bills-may-help-plan-sponsors/#.WpA6ShPwbOT
