To comply with changing international privacy requirements, ICI informs its visitors that we use cookies on our web site. ICI only uses cookies to allow subscribers and members to more easily use our site and to record site utilization. No personal or private information is gathered or stored. More details, including how to disable cookies, can be found on our privacy and cookie policy page. If you disable cookies, you will see this message on future visits to our site. Please click the enable button to consent to accepting cookies.
  • ICI Global
  • Independent Director's Council
Sign In  |  Forgot Password?
Advanced | Tips
  • Home
  • Policy Priorities
    • Fund Regulation
    • Retirement Security
    • Trading & Markets
    • Fund Governance
    • Taxes
    • ICI Comment Letters
  • Research & Statistics
    • Industry Research
    • Investor Research
    • Retirement Research
    • Statistics
  • Government Affairs
    • Financial Services
    • Retirement Security
    • Tax
    • Testimony
  • Industry Operations
    • Fund Accounting, Financial Reporting, and Valuation
    • Fund Distribution, Fund Clearance, and Settlement
    • Operations, Transfer Agent Servicing, and Recordkeeping
    • Portfolio Security Operations
    • Resource Centers
    • Technology, Business Continuity, and Information Security
  • News & Media
    • Media Contacts
    • News Releases
    • Blog: ICI Viewpoints
    • Speeches & Commentaries
    • Opinions & Responses
    • Videos
    • Podcasts
  • Publications & Resources
    • Resource Centers
    • Frequently Asked Questions
    • Fact Books
    • Research Publications
    • White Papers
    • Annual Reports
  • Events
    • ICI Events
    • ICI Global Events
    • IDC Events
    • Past Event Highlights
    • Sponsorship Opportunities
    • Event Contacts
  • About ICI
    • Mission & History
    • Board & Leadership
    • Membership
    • Annual Reports
    • ICI Education Foundation
    • Business Continuity
    • Careers
    • Contact Us
  • Media Contacts
    • ICI Media Contacts
    • ICI Global Media Contacts
    • IDC Media Contacts
    • Media Credential Guidelines
  • News Releases
    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • Archive
  • Blog: ICI Viewpoints
  • Speeches & Commentaries
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • Archive
  • Opinions & Responses
    • ICI Opinions
    • ICI Letters to Editor and Responses
  • Videos
    • Explainer Videos
    • Focus on Funds
    • Video Interviews
    • Event Video
    • A Minute with ICI
  • Podcasts

Home News & Media News Releases

Print this page

SECURE Act Delivers Major Wins for American Savers

Washington, DC; December 17, 2019—Investment Company Institute (ICI) President and CEO Paul Schott Stevens issued the following statement after the US House of Representatives passed the Fiscal Year 2020 Consolidated Domestic and International Assistance Package (H.R. 1865), which includes the Setting Every Community Up for Retirement Enhancement Act (H.R. 1994), also known as the SECURE Act:

“The SECURE Act delivers major wins for American savers. Changes like expanding access to multiple employer plans and raising the auto-enrollment safe harbor cap build on policies that are proven to strengthen our retirement system. Other reforms, such as repealing the maximum age for making traditional IRA contributions and increasing the age required for mandatory distributions, will help align policy with the reality that people are living longer today.

"ICI deeply appreciates the hard work by congressional leadership of both parties, as well as Ways and Means Committee Chairman Richard Neal and Ranking Member Kevin Brady, whose tireless efforts were critical in getting this bill through the legislative process. When it crosses the finish line later this week, it will help more American families save for and achieve a financially secure retirement.”

Highlights of the SECURE Act include:

  • allowing companies—regardless of industry—to join together to form multiple employer 401(k) plans;
  • increasing the auto-enrollment safe harbor cap from 10 percent to 15 percent;
  • simplifying the nonelective contribution 401(k) safe harbor by providing notice and amendment flexibility;
  • treating certain taxable non-tuition fellowship and stipend payments as compensation for IRA purposes, thus making it easier for individuals receiving such payments to save through an IRA;
  • repealing the maximum age (now 70½) for making traditional IRA contributions;
  • increasing the age at which required minimum distributions (RMDs) must start from 70½ to 72;
  • expanding the types of education costs that are coverable by 529 plans; and
  • increasing the credit limit for small employer start-up costs and creating a new auto-enrollment credit to defray associated start-up costs.

Read Stevens’s op-ed to learn about the importance of the SECURE Act.


top
  • About ICI
  • About IDC
  • About ICI Global
  • Privacy and Cookie Policy
  • Apply for User Account
  • Business Continuity
  • Contact ICI

Copyright © 2021 by the Investment Company Institute