Page 39 - Investment Advisor June 2021
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THE PLAYING FIELD
By Melanie Waddell
Reactions From the Front to Secure 2.0
The sweeping retirement bill still has to be passed by Congress, yet many
provisions have caused confusion, say experts.
he unanimous passage by it advances toward passage.”
the House Ways and Means IRA and tax specialist Ed Slott of Ed
TCommittee on May 5 of the Slott & Co., said that the unanimous
sweeping retirement bill, H.R. 2954, the passage of the bill by Ways and Means
Securing a Strong Retirement Act of signals likely passage by the full House.
2021, dubbed the Secure Act 2.0, spurred “There’s nothing politically controver-
rounds of applause in the retirement sial in here,” he said.
planning community, but some provi-
sions left advisors scratching their heads. RMDs EXPANDED
Secure 2.0 raises the required mini- One of the most talked about provisions
mum distribution age from 72 to 75 over of the bill is the increase in the required
10 years, expands automatic enrollment minimum distribution age from 72 to
in retirement plans and enhances 403(b) 75. Under current law, participants are
plans, among other provisions, and is generally required to begin taking dis-
now on its way to the full House. tributions from their retirement plans
IRA and tax specialist D-Mass., said May 5 during the markup at age 72, an increase ushered in by the
Committee Chairman Richard Neal,
Secure Act.
Ed Slott of Ed Slott that he is “really proud of this bipartisan Secure 2.0 increases the RMD age
& Co., said that the work,” that went into Secure Act 2.0, further to 73 starting on Jan. 1, 2022; to
noting a special thanks to Committee
74 starting on Jan. 1, 2029; and 75 start-
unanimous passage Ranking Member Kevin Brady, R-Texas. ing on Jan. 1, 2032.
The bill, Neal said, will “help Americans
Eric Walters, managing partner and
of the bill by Ways prepare for a financially secure retire- founder of Summit Hill Wealth Partners
and Means signals ment,” and builds on “the landmark pro- in Greenwood Village, Colorado, told me
in an email that he believes Secure 2.0 “is
visions” in the Setting Every Community
likely passage by the Up for Retirement Enhancement a good step towards helping American
full House. “There’s (Secure) Act of 2019, which Neal called save more for retirement and adjusting
our system for increases in lifespan and
“the most significant retirement legisla-
nothing politically tion to become law in over a decade.” investment options.”
Walters opined that “slowly increas-
The Bipartisan Policy Center in
controversial in here,” Washington noted after the bill’s pas- ing the start date of required mini-
he said. sage that saving for retirement “consis- mum distributions from 72 to 75 allows
workers to continue to work and earn
tently ranks as Americans’ top financial
worry. With reserves in Social Security’s money towards retirement while con-
trust fund dwindling, life expectancies trolling when and how they use their
generally increasing, and health care retirement funds.”
costs rising, policymakers must remain Slott, however, reiterated his view that
focused on these critical issues.” raising the RMD age is confusing. “This
Secure 2.0 “is an important step, but it whole business with raising the RMD
cannot be the last one,” said Shai Akabas, age — it went from 70 ½, the Secure Act
director of economic policy for the BPC. put it to 72, that confused a lot of people;
“I hope this promising legislation will … then they [Congress] say they’re going
continue to be refined and improved as to go to 73, then 74, then 75 in 10 years —
JUNE 2021 INVESTMENT ADVISOR 37
