JCT Estimates Retirement Savings Bill Would Raise $4.8 Billion

JCT Estimates Retirement Savings Bill Would Raise $4.8 Billion

U.S. Joint Committee on Taxation

H.R. 1994, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, as scheduled for markup by the House Ways and Means Committee, would increase revenue by $4.8 billion from 2019 to 2029, the Joint Committee on Taxation said in an April 1 report (JCX-12-19).

H.R. 1994, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, as scheduled for markup by the House Ways and Means Committee, would increase revenue by $4.8 billion from 2019 to 2029, the Joint Committee on Taxation said in an April 1 report (JCX-12-19).

<a href="/lr/resolve//299t3">H.R. 1994</a>, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, as scheduled for markup by the House Ways and Means Committee, would increase revenue by $4.8 billion from 2019 to 2029, the Joint Committee on Taxation said in an April 1 report (JCX-12-19). The bill’s provision to raise the required beginning age for mandatory retirement plan distributions would cost $8.9 billion over 10 years, and the provision allowing penalty-free withdrawals from retirement plans following a child’s birth or adoption would cost $1.2 billion, the JCT said. The provision requiring qualified cash or deferred arrangements to allow long-term part-time employees to participate would cost $769 million, expansion of section 529 education plans would cost $245 million, and the provision increasing contribution limits for qualified plans to include “difficulty of care” payments would cost $249 million, according to the JCT. On the revenue-raising side, the provision modifying minimum distribution rules for designated beneficiaries would raise $15.8 billion over the decade, increasing the penalty for failure to file would raise $257 million, increasing the penalty for failure to file retirement plan returns would raise $128 million, and improving information sharing to better administer and collect excise taxes would raise $163 million, the JCT said.

H.R. 1994, the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, as scheduled for markup by the House Ways and Means Committee, would increase revenue by $4.8 billion from 2019 to 2029, the Joint Committee on Taxation said in an April 1 report (JCX-12-19). The bill’s provision to raise the required beginning age for mandatory retirement plan distributions would cost $8.9 billion over 10 years, and the provision allowing penalty-free withdrawals from retirement plans following a child’s birth or adoption would cost $1.2 billion, the JCT said. The provision requiring qualified cash or deferred arrangements to allow long-term part-time employees to participate would cost $769 million, expansion of section 529 education plans would cost $245 million, and the provision increasing contribution limits for qualified plans to include “difficulty of care” payments would cost $249 million, according to the JCT. On the revenue-raising side, the provision modifying minimum distribution rules for designated beneficiaries would raise $15.8 billion over the decade, increasing the penalty for failure to file would raise $257 million, increasing the penalty for failure to file retirement plan returns would raise $128 million, and improving information sharing to better administer and collect excise taxes would raise $163 million, the JCT said.