A moment with the Congressman
Financing retirement
Companies across Ohio have benefited from the Tax Cuts and Jobs Act, most of whom have announced bonuses, increased pay, improved benefits, and possible plans to increase charitable donations. These cuts are enabling Ohio businesses to invest in workers and innovation. Making the Tax Cuts and Jobs Act permanent will further allow businesses to pass these savings on to its workers. An important aspect of this legislation is the Improvement of Retirement Options.
Roughly one-third of the private sector workforce does not have an employer-sponsored retirement plan; the number is even greater for those who work for a small business. The administrative costs to provide such benefits are quite burdensome to a vast number of small businesses. Consequently, many Americans are not adequately prepared for retirement. The Retirement Security for American Workers Act – which is part of the legislation – helps remedy this problem.
Whereas currently, employers are generally not able to come together and provide joint retirement plans, two or more companies will now be able to jointly offer a combined plan or IRA (also known as Open Multiple Employer Plans). This new provision will incentivize more and more small businesses to collectively grant decent retirement packages to their workers. Additionally, rules will be simplified. More time will be given to put a 401(K) in place. And more workers will be able to participate.
This bill further exempts small retirement accounts from mandatory payouts, eliminates age limits on IRA contributions, and allows military reservists to maximize their retirement contributions. Families can start saving earlier and save more throughout their lives.
This legislation is a win-win for both employers and employees. Employers will better retain employees by offering such benefits while employees will more effectively plan for their futures.
With an extensive background in business and as a father of three, I understand the importance of savings and planning for retirement. We also unfortunately live in a time when Social Security is possibly insolvent; people may not be able to depend on it. It is thus imperative that each person saves and invests in their future. The Retirement Security for American Workers Act facilitates just that.
Roughly one-third of the private sector workforce does not have an employer-sponsored retirement plan; the number is even greater for those who work for a small business. The administrative costs to provide such benefits are quite burdensome to a vast number of small businesses. Consequently, many Americans are not adequately prepared for retirement. The Retirement Security for American Workers Act – which is part of the legislation – helps remedy this problem.
Whereas currently, employers are generally not able to come together and provide joint retirement plans, two or more companies will now be able to jointly offer a combined plan or IRA (also known as Open Multiple Employer Plans). This new provision will incentivize more and more small businesses to collectively grant decent retirement packages to their workers. Additionally, rules will be simplified. More time will be given to put a 401(K) in place. And more workers will be able to participate.
This bill further exempts small retirement accounts from mandatory payouts, eliminates age limits on IRA contributions, and allows military reservists to maximize their retirement contributions. Families can start saving earlier and save more throughout their lives.
This legislation is a win-win for both employers and employees. Employers will better retain employees by offering such benefits while employees will more effectively plan for their futures.
With an extensive background in business and as a father of three, I understand the importance of savings and planning for retirement. We also unfortunately live in a time when Social Security is possibly insolvent; people may not be able to depend on it. It is thus imperative that each person saves and invests in their future. The Retirement Security for American Workers Act facilitates just that.
