The Senate Finance Committee yesterday approved the Retirement Enhancement and Savings Act of 2016 (“RESA”) by a vote of 26 to 0. RESA includes a host of provisions relating to qualified plans, as well as a small number of other provisions. It includes approximately $5.662 billion of revenue offsets, including modifications to the required minimum distribution rules, changes to failure-to-file penalties, and repeal of the partnership technical termination rules.
Provisions in RESA relating to “expanding and preserving retirement savings” and to administrative improvements to the qualified plan rules include:
Multiple employer plans
Cooperative and small employer charity plans
Section 401(k) plans
Small employer credits
Contributions to qualified plans
Distributions and withdrawals
Section 403(b) plans
Fiduciary safe harbor
Other revenue-losing provisions
RESA also includes the following other provisions that are scored as losing revenue:
The bill includes revenue offsets relating both to qualified plans and to other, more general, provisions of the Code.
Qualified plan-related raisers
At the same markup, the Senate Finance Committee also approved The Miners Protection Act, which provides funding of retiree health and pension benefits for employees in the coal industry. The revenue cost of that bill is offset by extending certain customs user fees that expire in 2025.
The RESA bill has bipartisan support among members of the Finance Committee. The Senate is scheduled to adjourn on September 30; however, and it may adjourn earlier because of the upcoming elections. Congress is scheduled to return after the elections, but only for four weeks. The short legislative calendar makes passage of the bill in this Congress uncertain.
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