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McHenry Introduces New Bill to Support Retirement Savers Hurt by COVID-19

Washington, Apr 21 -

Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), introduced new legislation to help Americans whose retirement savings have been harmed by the economic impact of coronavirus (COVID-19). H.R. 6562, the Securing Additional Value for Every Retirement Saver (SAVERS) Act, temporarily raises contribution limits on tax-preferred retirement savings plans and individual retirement accounts. This will allow all savers the opportunity to prepare for a financially secure retirement and encourage investment in companies that need capital.

“Every American is feeling the economic impact of COVID-19,” said Ranking Member McHenry. “We need to give savers the opportunity to shore up the savings they have worked so hard to grow. The SAVERS Act is a commonsense and temporary fix to put these everyday investors back on the right track toward their retirement goal, tax-free. Whether retirement is right around the corner or several years down the road, these funds are critical for the financial wellbeing of millions of Americans and thousands of struggling businesses through our capital markets.”

Key Facts on the SAVERS Act:

• The SAVERS Act temporarily raises contribution limits for tax-preferred defined contribution plans, including 401(k)s, 457 plans, and Individual Retirement Accounts (IRAs), among others.
• Typically, contributions are capped at the saver’s annual compensation or a fixed dollar amount for all participants, whichever is less. For example, the fixed dollar amount contribution limit for 401(k)s in 2020 is $19,500.
• The SAVERS Act triples maximum contribution limitations for 2020 and, for savers limited by their annual income, allows such savers to contribute up to 100% of their annual compensation from 2019 or 2020, whichever is higher.

Find more information on the federal response to COVID-19 here.