Changes needed for Gold Star Families those who have lost family members in Military Service
WASHINGTON D.C. (Texas Insider Report) Senator Tim Scott (R-SC) has ramped up his call for Senate Majority Leader Mitch McConnell (R-KY) to immediately move Senate consideration of the bipartisan Setting Every Community Up for Retirement Enhancement Act or SECURE Act to help fix the nations retirement crisis and helping workers of all ages invest and save for their futures.
Sen. Scott (at right with President Donald Trump) was joined on a letter to Majority Leader McConnell by Senators Susan Collins (R-ME) Joni Ernst (R-IA) Cory Gardner (R-CO) Rob Portman (R-OH) Martha McSally (R-AZ) and Thom Tillis (R-NC).
With a passage in the House of Representatives earlier this year by a vote of 417-3 this widely bipartisan bill would not only benefit Americas elderly but specifically assists Gold Star Families apprenticeship program participants low-income scholarship recipients and children of fallen first responders.
This bipartisan legislation would expand access to retirement plans for millions of Americans allow older workers and retirees to contribute more to their retirement accounts increase 401(k) coverage to part-time employees prevent as many as 4 million people in private-sector pension plans from losing future benefits protect 1400 religiously affiliated organizations whose access to their defined contribution retirement plans is in jeopardy and do the right thing for Gold Star Families said the Senators in their letter to McConnell.
We encourage the Senate to take action on the SECURE Act as soon as possible.
Doing so demonstrates to our constituents that the Senate can lead in a bipartisan way for workers saving for retirement tax fairness and family financial security" the Senators wrote.
The need for a Gold Star Families tax law change impacting those who have lost family members in military service was discovered after implementation of the Tax Cuts & Jobs Act of 2017 caused many military families to pay substantially higher taxes on their Defense Department Benefits Package some by as much as five times more.
The Houses SECURE Act bill H.R.1994 the Setting Every Community up for Retirement Enhancement Act of 2019" would also make it easier for smaller employers to join multiple-employer retirement plans and creates a more favorable tax treatment option for parents who want to withdraw funds from their IRA or 401K plans to adopt a child.
Currently couples seeking to adopt but who may not have immediate funds or resources to help finance the adoption pay a penalty to use the money saved in an IRA or 401K account to facilitate the adoption.
If no senator were to object to the unanimous consent offering calling for the legislation to be taken up the bill would simply pass as is.
My hope is they do this sooner rather than later because as weve seen in the past the provisions in the SECURE Act are not new theyve been around for the past couple of years" said Srinivas Reddy Senior Vice President of Retirement & Income at Principal Financial Group in Des Moines Iowa.
The longer it takes the more the likelihood it doesnt pass" said Reddy who also serves a chairman of the U.S. Dept. of Labors ERISA Advisory Council.
Added Susan Neely President & CEO of the American Council of Life Insurers:
Theres so much momentum for this bill which is good for small business owners and their employees Sen. Scott continues to lead for families and in this case helping so many start to save for retirement and safeguarding others retirement security.
The SECURE Act also helps Gold Star Families and volunteer first responders.
Its the perfect time for the Senate to act and get this commonsense important bipartisan legislation over the finish line securing millions of Americans financial futures" Neely said.
- Click HERE to read Senator Sccotts full letter.