Retire Better: Workers and retirees are getting some year-end goodies from Washington—and more could be on the way

by | Dec 28, 2022 | Stock Market

America’s workers and retirees are getting some nice year-end gifts from Washington. As part of a bigger bill to keep the government running, Congress has passed, and President Biden has signed, something called Secure 2.0, which will make it easier for millions of Americans to stash more cash into their workplace retirement plans.

It will also help middle and lower-income workers who may not be able to save much by providing them with a new benefit that amounts to a savings contribution—up to $1,000 per person. Finally, it will make it easier for part-time workers to enroll in an employer’s retirement plan, by requiring plans to automatically enroll workers unless they opt-out.  Read: New catch-up contribution limits could boost your 401(k)—if you can afford them This last change is potentially significant, because there are some 26 million Americans who, for various reasons, only work part time. Why should retirement plans be available only to full-time workers? Last week’s bill builds on 2019 legislation requiring employers with 401(k) plans to permit long-term part-time employees to join, including those with one year of service (with 1,000 hours) or three consecutive years (with 500 hours of service). Starting in 2025, the new bill will shorten this waiting period by a year—meaning part-timers will be able to enroll in their employer’s plan after two years, instead of the present three. Read: 401(k) auto-enrollment in Secure 2.0 to help retirement savers But now let’s read the fin …

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