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Senate RESA Bill

The Retirement Enhancement and Savings Act (RESA) has been introduced in the Senate, designed to increase accessibility to retirement savings opportunities and encourage retirement savings. Key measures include authorizing broader use of multiple employer plans, allowing access to retirement savings for employees of small companies, simplifying safe harbor 401(k) plan rules to include elimination of the safe harbor notice requirement and a removal of the 10% cap on the safe harbor automatic escalation of salary deferrals. The bill also repeals the cessation of IRA contributions after age 70 ½ and modifies minimum required distribution rules upon death of the owner so as to encourage retirement savings by the beneficiaries of such accounts.

www.planadviser.com; April 2, 2019.