This week, two key congressional committees launched equivalent dialogue drafts of laws containing technical corrections and different clarifications to be made to the Setting Each Neighborhood Up for Retirement Enhancement 2.0 Act of 2022, recognized within the retirement trade as Safe 2.0.
Whereas consultants say it’s regular for important laws to have technical drafting errors, the Safe 2.0 Act bundle included some large ones. One probably disruptive error, as an illustration, would inadvertently disallow 401(ok) 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 will likely be adopted earlier than the top of the 12 months. This is able to permit the IRS and different regulators sufficient time to promulgate guiding laws forward of essential implementation deadlines coded into the Safe 2.0 legislation.
Finally, the corrections invoice have to be handed to make sure that the large retirement reform bundle capabilities as meant, however it’s as but unclear precisely when Congress will be capable of advance the invoice and ship it to the president for signature.
Within the meantime, readers can evaluate this slideshow for a rundown of 10 key fixes and clarifications embrace within the technical corrections invoice.