SECURE Act and How It Could Affect You

By Kindur | May 23, 2019

Retirement Reform: 4 Ways the SECURE Act May Impact You
By: Alastair Wood, General Counsel at Kindur

In what industry experts are calling the most significant potential changes to the U.S. retirement system in the last decade, the House of Representatives passed the “Setting Every Community up for Retirement Enhancement,” or SECURE Act on Thursday. This bill, which passed with overwhelming bipartisan support by a vote of 417-3, will now proceed to the Senate where similar bipartisan legislation is pending. Given the similarity between the House and Senate bills and their support across party lines, many are hopeful that the Senate could pass a final retirement reform bill by August.

Congressman Richard Neal, Chairman of the House Ways & Means Committee, and co-sponsor of the bill, explained the pressing need for this reform, stating that:

“Unfortunately, Americans currently face a retirement income crisis, with too many people in danger of not having enough in retirement to maintain their standard of living and avoid sliding into poverty. Social Security benefits are modest, employer-sponsored pensions are disappearing, and too many Americans find it difficult to save for retirement.”

The SECURE Act contains many popular proposals designed to help Americans prepare for retirement. We’ve highlighted a few of the most impactful changes and how they could impact your retirement.

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How it could impact you: This change could give you up to two extra years to allow your money to grow tax deferred in qualified accounts such as IRAs and 401(k) plans. A similar proposal in the Senate version of the bill goes even further and would not require distributions until 75 years old. That means more time to work if you want to, or just let your money stay invested in qualified accounts until you are ready to begin taking distributions.

How it could impact you: Many people are working beyond age 70, either by choice or out of necessity. With the restriction on contributions to traditional IRAs lifted, people working into their 70s would have the opportunity to continue taking advantage of the benefits of saving in tax-deferred accounts until they are ready to retire or even in retirement. That’s more time to build the nest egg to support an increasingly longer life in retirement.

How it could impact you: It is common for retirement to be a slow transition rather than a switch you flip, with many people moving from full-time work to part-time work before fully retiring. This change would give those transitioning to retirement with part-time work, and those who’ve always had part-time work, greater access to 401(k) plans to bolster their retirement nest egg. This is especially important for women, who are more likely to work part-time.

How it could impact you: If you work at a small business and previously haven’t had access to retirement plans like a 401(k), this change may allow you to participate in the benefits of saving in this type of tax-deferred fund.

What’s next for this legislation and future retirement reform?

This legislation now moves to the Senate where it will be reconciled with a similar Senate proposal called the Retirement Enhancement and Savings Act of 2019 (RESA). With very similar provisions to the House bill, the Senate version also enjoys wide bipartisan support and it is expected that the Senate could pass a final bill by August for the President’s signature.

Additional retirement legislation may also be coming from the House later this year. SECURE Act co-sponsor Congressman Neal said when introducing the SECURE Act that he intended to propose another round of retirement legislation later this year. Many believe that Congressman Neal will use his powerful position as chairman of the Ways and Means Committee to include a proposal to require companies of a certain size to offer retirement plans to their workers which is a position Neal has advocated previously.

At Kindur, we are incredibly encouraged by this news and support Congress’ efforts to work together and advance critical reform to help all Americans take on the challenges of modern retirement and help people prepare for a long retirement with the savings they need. We will continue to watch as important reforms work their way through Congress and will provide updates on any legislation that could affect you and your retirement.


To learn how Kindur can help navigate the complex decisions facing modern retirees, contact us at or call (800) 961-3572.