- Jun 13, 2014
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House committee passes bill to upgrade 401(k) plans amid 'retirement income crisis'
The bill includes:
The bill includes:
- A host of provisions aimed at encouraging small businesses to provide private retirement benefits to their workers.
- It allows them to band together to offer 401(k)s and creates a new tax credit of up to $500 for companies that set up plans with automatic enrollment.
- Businesses with long-term, part-time workers must also allow them to become eligible for retirement benefits.
- It repeals the maximum age for IRA contributions and raises the age for required mandatory distributions from 70½ to 72.
- It also expands the use of 529 plans, from only college-related expenses to include private schools, home schools and student loans.