Ways and Means Committee passes bipartisan legislation to help Americans achieve financial security in retirement

May 5, 2021

Washington, D.C. - Today the House Committee on Ways and Means passed the H.R. 2954, the Secure a Strong Retirement Act of 2021. This bipartisan legislation will help more Americans prepare for a secure retirement. The bill, which now goes to the whole House for consideration, would build on the successes of the SECURE Act, which was enacted at the end of 2019.

"I am proud that this committee has once again come together to advance bipartisan legislation that helps Americans be more financially secure in their golden years," said Kelly. "Simplifying the administration of retirement plans and providing workers with more investment choices lets Americans take charge of their future, build wealth, and achieve financial security in retirement."

The Secure a Strong Retirement Act includes several proposals authored or co-authored by Representative Kelly, including provisions to:

  • Expand auto-enrollment in retirement plans;
  • Offer tax credits to startups for matching contributions for employees;
  • Allow 403(b) non-profit organizations to participate in pooled retirement plans;
  • Incentivize small business startups to join pooled plans;
  • Offer tax credits for small businesses that make military spouses eligible for plan benefits;
  • Reduce penalties for retirees who fail to take required minimum distributions from 50% to 25%;
  • Improve the IRS' employee plans compliance resolution system to allow errors to be more easily resolved;
  • Allow more flexibility for retirees to make contributions to charities from their retirement accounts;
  • Ensure that retirement plan withdrawals are not penalized if used for qualified birth or adoption expenses if repaid within three years; and
  • Limit IRA disqualification penalties to only funds involved in a prohibited transaction rather than the entire account.