House Advances Bipartisan Retirement Savings Bill

WASHINGTON (CN) – The House of Representatives overwhelmingly passed a bill Thursday aimed at making it easier for companies to offer retirement plans for their employees.

The bill cleared the House 417-3 on Thursday morning. The measure changes rules to allow unrelated small businesses to join together on the same plan and eases the process for people to transfer their retirement plans when they change to a new job.

House Ways and Means Committee Chairman Richard Neal, D-Mass., attends a May 9, 2019, hearing in Washington. (AP Photo/J. Scott Applewhite)

“We have before us today the most important and substantive advance in retirement savings in the last 15 years in America,” Representative Richard Neal, D-Mass., said on the House floor Thursday morning.

In addition, the bill does away with an error in the sweeping tax cut bill Republicans passed in 2017 that taxed at a higher rate benefits paid to the children of deceased military veterans. A provision in the tax bill made it so the benefits given to children of deceased veterans were treated as trusts, subjecting them to higher rates.

An amendment Neal offered to the bill earlier this week did away with this change to the so-called “kiddie tax,” which Republicans have said was unintentional.  

The bill enjoyed unusually bipartisan support in the House and now goes to the Senate.

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