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House Passes Bill Making Big Changes to U.S. Retirement System - ABI

The House of Representatives passed legislation that would bring substantial changes to the U.S. retirement system, making it easier for employers to offer 401(k)-type plans and include annuities, which guarantee an annual income, as options for workers, the Wall Street Journal reported. Backed by a bipartisan group of lawmakers including Rep. Richard Neal (D- Mass.), chairman of the House Ways and Means Committee, the legislation would repeal the age cap for contributing to traditional individual retirement accounts, currently 70½. It would also increase the age to start taking required withdrawals from 401(k)s and IRAs to 72 from 70½. The House bill, known as the Setting Every Community Up for Retirement Enhancement, or Secure Act, passed with a vote of 417-3. A Senate GOP aide said that the plan is for the Senate to vote on the House’s Secure Act, rather than its own version, and Sen. Rob Portman (R-Ohio), a Finance Committee member who is active on retirement policy, said that the Senate should swiftly pass the House bill.

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