401(k) changes part of bipartisan bill heading to Trump's desk

Evie Fordham

A bill to expand Americans' access to retirement accounts is heading to President Trump's desk after the Senate approved it 71-23 on Thursday.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act includes a provision that would raise the age for IRA required minimum distributions and allow Americans over age 70 ½ to make traditional IRA contributions. It would also allow penalty-free retirement plan withdrawals for new parents and let part-time workers to participate in 401(k) plans with certain restrictions.

RETIREMENT REFORM: KEY SECURE ACT PROVISIONS THAT WILL AFFECT YOU

The SECURE Act was tied to a bill that Congress had to pass in order to sidestep a government shutdown at the end of the week.

The bill would also make it easier for companies to band together to offer multi-employer plans. Some businesses would be required to allow some part-time workers to participate.

Multi-employer plans are currently available, but the legislation would change one significant rule that might encourage more businesses to participate.

In order to help Americans stretch out retirement savings over their lifetime, the plan also calls for an annuity option in retirement plans, which are fixed sums paid out over a lifetime.

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John Iammarino, the principal and founder of Securus Financial, told FOX Business the annuity option is particularly important since future retirees won't have a pension like their parents and grandparents.

"It doesn't matter how much money you have if you don't turn it into a predictable lifetime income stream," Iammarino said. "The annuity option [gives people] the ability to have a predictable income stream and helps alleviate some of that pressure from Social Security."

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FOX Business' Brittany De Lea contributed to this report.

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