Retirement Enhancement and Savings Act of 2016

Bill 114 s 3471, also known as the Retirement Enhancement and Savings Act of 2016, is a piece of legislation introduced in the US Congress aimed at improving retirement savings options for Americans. The bill includes several key provisions that are designed to help individuals save more effectively for their retirement.

One of the main components of the bill is the expansion of access to retirement savings plans for small businesses. The bill would make it easier for small businesses to offer retirement plans to their employees by creating multiple employer plans (MEPs). These MEPs would allow small businesses to join together to offer retirement plans, reducing administrative costs and making it more affordable for employers to provide retirement benefits to their workers.

Additionally, the bill includes provisions to increase the age at which individuals are required to start taking distributions from their retirement accounts. Currently, individuals are required to start taking distributions from their retirement accounts at age 70 and a half. The bill would increase this age to 72, allowing individuals to keep their retirement savings invested for longer and potentially increasing the amount of money they have available for retirement. The Retirement Enhancement and Savings Act of 2016 also includes provisions to make it easier for individuals to save for retirement by allowing them to contribute to their retirement accounts beyond the age of 70 and a half. Currently, individuals are not allowed to make contributions to traditional IRAs once they reach this age. The bill would remove this restriction, allowing individuals to continue to save for retirement even after they have started taking distributions from their accounts. Overall, the Retirement Enhancement and Savings Act of 2016 is aimed at improving retirement savings options for Americans by expanding access to retirement plans, increasing the age at which individuals are required to start taking distributions from their accounts, and allowing individuals to continue to save for retirement beyond the age of 70 and a half. The bill is currently under consideration in Congress and has the potential to have a significant impact on the retirement savings landscape in the United States.