Helping Young Americans Save for Retirement Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill, the Helping Young Americans Save for Retirement Act, changes rules about when young workers can participate in employer-sponsored retirement plans. Specifically, it lowers the minimum age from 21 to 18 for eligibility, allowing younger employees to contribute to and benefit from these plans more quickly. The legislation also modifies how these plans are evaluated and reported, aiming to simplify the process for employers and employees.
Key provisions
- Lowers the minimum age for employee participation in retirement plans from 21 to 18.
- Changes the calculation of the period during which employees must work at least 500 hours to qualify for participation.
- Modifies ERISA to include ‘younger employees’ in the minimum participation standards.
- Updates Internal Revenue Code sections related to 401(k) and 403(b) plans to align with the changes in ERISA.
- Requires a 5-year delay in counting employees participating solely due to the age 18 provision.
- Clarifies reporting requirements for pension plans with participants solely due to the age 18 provision.
- Revises plan year definitions to include ‘younger workers’.
- Adjusts the application date of the changes to plan years beginning after the bill’s enactment.
Who is affected
- Employees
- Employers offering retirement plans
- Financial institutions administering retirement plans
Bill text
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Sponsors
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8 on record
Primary sponsor
Cosponsors
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