Bustos Helps Pass Legislation to Strengthen Illinoisans Ability to Save for Retirement

WASHINGTON – Today, Congresswoman Cheri Bustos (D-IL) voted in favor of the Setting Every Community Up for Retirement Enhancement (SECURE) Act. This legislation will help hardworking Illinoisans save for retirement by providing assistance to small businesses, home health workers and beyond. In addition, it corrects the damaging consequences the GOP Tax Scam has had on Gold Star families after being hastily passed and raising tax rates on the children of our fallen heroes.

“When Washington Republicans rushed to give massive tax breaks to corporate outsourcers and executives, they left behind hardworking families, stuck our future generation with the bill and, to top it off, placed a burden on Gold Star children,” Congresswoman Bustos said. “Today’s legislation corrects those wrongs by providing relief to our Gold Star families and improving the ability of workers to save for a hard-earned retirement. I’m pleased to join my colleagues today by passing legislation that fights for the people and improves their quality of life.”

BACKGROUND

To help Illinoisans save for retirement, the SECURE Act:

  • Provides relief to Gold Star families by repealing the “kiddie tax” – an element of the GOP Tax Scam that changed how children’s assets were taxed and significantly increased tax rates on the benefits spouses of fallen servicemembers typically pass down to their children.
  • Boosts the ability of small businesses to offer their employees retirement plans by eliminating outdated barriers to the use of Multiple Employer Plans (MEPs) and improving the quality of MEP Services.
  • Allows home health care workers to contribute to a defined contribution plan or Individual Retirement Account (IRA), when they were previously unable to participate in a 401(k) plan or save with an IRA.
  • Ensures long-term, part-time workers are able to participate in their 401(k) plans.
  • Assists small employers by creating an automatic enrollment credit of up to $500 per year to defray start-up costs for new 401(k) plans that include automatic enrollment.

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