This week, two key congressional committees launched an identical dialogue drafts of laws containing technical corrections and different clarifications to be made to the Setting Each Group Up for Retirement Enhancement 2.0 Act of 2022, identified within the retirement business as Safe 2.0.
Whereas consultants say it’s regular for vital laws to have technical drafting errors, the Safe 2.0 Act bundle included some large ones. One doubtlessly disruptive error, as an example, would inadvertently disallow 401(okay) catch-up contributions after 2024.
Washington watchers inform ThinkAdvisor the push is already on to discover a piece of must-pass laws to which to connect the brand new Safe 2.0 corrections invoice, and although it’s a lengthy shot, they hope the corrections might be adopted earlier than the tip of the yr. This could enable the IRS and different regulators sufficient time to promulgate guiding laws forward of necessary implementation deadlines coded into the Safe 2.0 regulation.
Finally, the corrections invoice should be handed to make sure that the massive retirement reform bundle capabilities as supposed, however it’s as but unclear precisely when Congress will have the ability to advance the invoice and ship it to the president for signature.
Within the meantime, readers can overview this slideshow for a rundown of 10 key fixes and clarifications embody within the technical corrections invoice.
