secure 2.0 bill

[LivingAlmostLarge]

Did you see the secure act 2.0 bill passed by the house? Many good things and a few bad things.

Good
1. Auto enroll 401k more companies required - will help retirement savings
2. lower costs for getting 401k for companies and subsidize up to $1k
3. Raises the catch up contribution to $10k. That's a big deal but targeting high wage earners
4. Domestic abuse exemption is good
5. increased low income savers credit

bad -
1. increases RMD age - it favors rich people
2. consdering no RMD again will favor people rich enough to pass entirely to kids which is my problem with pushing back the RMD.

What do you guys think?

[bjl584]

I saw that it passed the house, but I haven't had a chance to look at the details.
I'm sure that the Senate will tweak it though.

I did see that they want to raise the required distribution age up to 75.
And at least one representative wants to eliminate required distributions altogether.

[Fishindude77]

Guess I don't see where raising the RMD age favors rich people, or really makes much difference to anyone?
It's their money. Why does it matter if they have to start tapping in at 70.5 or 75?

[myrdale]

Having the government pass laws to force people to do something by default......

You are opt into the 401(k) program by default. What is that money being invested into? You still have to choose what mutual funds its going into right?

What if the company doesn't have a retirement program. Does this mean all employers must offer a retirement program?

It raises the catch up contribution to $10k, but I am assuming this is after you've already maxed out $20.5k? Being able to put more back is nice, but what percent of the population actually puts the maximum back?

A domestic abuse exemption? I beat my wife and she can take money out? Does this require a police report or prosecution?

[ua_guy]

Lots of questions to be answered, sure.

Everywhere I've worked, enrollment in retirement savings has been automatic if you don't make a selection. They usually start at 3% minimum and some even schedule automatic contribution increases.