In a bitterly divided Congress, the Secure Act is one bill that might have a chance of passing in the House and Senate. It aims to update the private retirement account system – in other words, 401(k)s, individual retirement accounts (IRAs) – and make the accounts more accessible to people who work for small businesses.
The bill would also give account holders more flexibility when it comes to using their invested money. If the bill passes, it would mark the biggest change to private retirement plans in more than a decade, and some experts say the change would come at a crucial time when many baby boomers are reaching retirement age without enough money saved.
Ylan Mui is covering the story for CNBC, and says the bill is a “sweeping overhaul” of private retirement accounts.
“[Congress is] really looking at ways to modernize them and streamline them,” Mui says.
What you’ll hear in this segment:
– How small businesses would be able to band together to offer a group 401(k) plan to employees
– Why this could offer a solution for some workers who find it hard to save for retirement
– How the bill eliminates certain age restrictions when it comes to retirement accounts
Written by Caroline Covington.