Senior member of the Senate Finance Committee, Sen. Ben Cardin (D-MD), pressed for action on SECURE 2.0 legislation at the 2022 NAPA D.C. Fly-In Forum.
On July 26, Sen. Cardin highlighted the potential paths for enactment of SECURE 2.0 over the coming weeks, expressing urgency that action now would be preferred to enduring a drawn-out session of Congress later in the year.
“If I had my preference, I would pass it sooner rather than later; I don’t know how people are going to feel once the midterm elections are completed. It could affect attitudes. We’re ready to move. We’re ready to act. We’ve got to find a way.” Cardin stated.
On a positive front, pieces continue to move in a quality direction. According to Cardin, the Senate have been closely working with members of the House Ways & Means Committee in developing the legislation. Regarding the path(s) to enactment of the legislation, however, Cardin expressed that it could pass as a separate bill in the Senate, but floor time has lately been “hard to come by.”
A few key differences remain among the various bills, but Cardin doesn’t feel any of them would be considered “radical,” and thus, should be resolvable.
- The Senate Finance bill includes the ARA-supported “Starter 401(k),” while the House bill does not
- The House bill includes a requirement for new DC plans to automatically enroll participants, while the Senate Finance bill does not
- There is a discrepancy with how the House and Senate bills would enhance the Saver’s Credit, which is being increasingly referred to as the “Saver’s Match”
- There is a difference in approach taken with emergency savings and withdrawals between the two Senate bills, and while the House Bill does not include an emergency savings component, measures would be implemented to address it
For more detailed information regarding the key differences of the bills, as well as Sen. Cardin’s messaging and determination around the SECURE 2.0 legislation, you can access the full article from the National Tax-Deferred Savings Association (NTSA) here: mi**************@tr*****.com&utm_content=COM%5FNTSA%5FeNews%5F8%2E4%2E2022%5FThu&utm_campaign=IRS%20Extends%20Plan%20Amendment%20Deadlines" rel="noopener">NTSA Article.