Source: United States House of Representatives – Congressman Ron Kind (3rd District Wisconsin)
October 16, 2020
La Crosse – Today, Rep. Ron Kind introduced the bipartisan Savings for All Vocations Enhancement (SAVE) Act. This bill will increase access to retirement savings for employees of nonprofit organizations that utilize 403(b) employer-provided retirement plans, incentivize S-Corporation businesses to convert to an Employee Stock Ownership Plan (ESOP) structure, and correct overly harsh individual retirement account (IRA) penalties bringing them in line with those of 401(k)s. The SAVE Act was introduced with Reps. Mike Kelly (R-PA) and Jason Smith (R-MO).
According to the Economic Policy Institute, 55% of Americans have no meaningful retirement savings. The bill would expand access to savings by includes provisions to:
- Incentivize owners of S-Corporations to convert to ESOPs
- Make sure that an inadvertent mistake on your IRA does not ruin your retirement by rectifying penalties that IRA holders can face by bringing them in line with 401(k) penalties
- Allow for 403(b) plans to utilize Open Multiple Employer Plans, which would allow 403(b) plans for workers from non-profits such as hospitals, school districts, and churches to pool their retirement investments together, creating better opportunities and security for their retirements
“I am proud to introduce the bipartisan SAVE Act today to help more Americans better plan for retirement,” said Rep. Ron Kind. “Too many Wisconsinites find saving for retirement to be out of reach and confusing but these are commonsense steps to make retirement savings as easy and understandable as possible for everyone, no matter what they do.”
“As the nation continues to grapple with staggering job losses and massive uncertainty facing our workers, it is urgent that policymakers in Washington create more economic stability and opportunity for everyday workers,” said Employee-owned S Corporations of America (ESCA) President and CEO Stephanie Silverman. Even before the current crisis, almost half of working Americans had no employer-provided retirement savings plan, Silverman said, whereas every employee-owner who is part of an ESOP-owned company has at least one company retirement plan. “By facilitating more ESOPs in private industry, Congressman Kind’s legislation will allow even more Americans to build meaningful retirement savings and reap the benefits of employee-ownership,” she added.
Read the bipartisan bill here.