Could Congress Soon Expand Your Retirement Options?

Regardless of the outcomes of yesterday’s elections, it appears that Congress could be poised to expand retirement options in the near future. The Retirement Enhancement and Savings Act (RESA), which appears to have bipartisan support, could expand retirement plan access for many workers as well as allow more employers to offer such plans. The biggest selling point of the legislation is that it will allow small businesses to band together–pooling resources and increasing buying power–and offer multi-employer retirement plans (MEPs) to employees similar to those offered by larger businesses and corporations. This can be an enticing offer for small businesses and could be a recruiting and hiring advantage in the future for them. While MEPs are currently available for some small business, RESA would do away with some of the current restrictions, making it easier for small employers to band together. RESA also looks to repeal the prohibition on workers over 70 1/2 making contributions to IRAs. This could be an advantage for younger generations who may have to work longer–but will also live longer–to save enough for retirement in the future. As with any legislation, there’s always the possibility that it could hit a snag somewhere in the process, but for now, it looks like it has a good chance of passing with support from both sides of the aisle. If you are looking to make some changes to your retirement plans or are an employer interested in offering more retirement benefits to your employees, you may want to pay attention to RESA and brush up on what it offers.