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EARN Act
4/17/2024, 11:44 PM
Summary of Bill S 4808
The EARN Act aims to create a competitive grant program that would provide funding to states for the development and implementation of innovative workforce training programs. These programs would focus on helping individuals gain the skills and knowledge needed to secure high-demand, well-paying jobs in industries such as healthcare, technology, and manufacturing.
Additionally, the EARN Act seeks to promote partnerships between employers, educational institutions, and workforce development agencies to ensure that training programs are aligned with the needs of the labor market. This collaboration would help to bridge the skills gap and connect individuals with job opportunities that match their qualifications. Overall, the EARN Act is designed to support economic growth and prosperity by investing in the development of a skilled and competitive workforce. It emphasizes the importance of providing individuals with the tools they need to succeed in the modern economy and aims to create pathways to upward mobility for all Americans.
Congressional Summary of S 4808
Enhancing American Retirement Now Act or the EARN Act
This bill revises or establishes new tax provisions relating to retirement plans for individuals, retirees, public safety officers and military personnel, disaster relief, and employer plans.
The bill revises various provisions relating to individual retirement plans, including provisions to (1) establish a safe harbor for automatic enrollment plans; (2) allow a refundable income tax credit, up to $1,000, for retirement savings contributions; (3) allow penalty-free withdrawals from plans for emergency expenses; (4) modify age requirements for catch-up provisions; (5) allow penalty free withdrawals from plans in domestic abuse cases; (6) allow transfers of plans (portability); and (7) modify the age requirement for ABLE programs for disabled individuals.
The bill makes changes to plans for retirees, including by (1) increasing the age for the start of mandatory plan distributions, (2) reducing the excise tax on certain accumulations in qualified retirement plans, (3) recovering retirement plan overpayments, (4) modifying certain Roth IRA distribution requirements, and (5) allowing plan distributions for individuals with a terminal illness.
The bill modifies provisions relating to retirement plans of public safety offices and military personnel. It allows (1) small employers a tax credit for establishing military spouse retirement plans, (2) penalty-free distributions to firefighters, (3) a tax exclusion for certain disability-related payment for first responders, and (4) an exemption from the early withdrawal penalty for distributions to certain state and local corrections employees.
The bill establishes special tax rules for the use of retirement funds for federally declared disasters.
The bill also modifies or establishes requirements relating to employer plans, including (1) allowing a tax credit for small employers with respect to safe harbor requirements for retirement plans, (2) increasing the credit limitation for small employer pension plan startup costs, (3) reforming family attribution rules, (4) providing for starter 401(k) plans for employers with no retirement plan, (5) allowing a tax credit for small employers that adopt an automatic portability arrangement, (6) modifying Internal Revenue Service mortality tables, (7) extending the period for transferring excess pension assets to retiree health accounts, and (8) deferring the tax on certain sales of employer stock to employee stock ownership plans sponsored by S corporations.
The bill modifies provisions relating to the retirement of U.S. Tax Court judges, including participation in the Thrift Savings Plan.
