HR 5875 · 113th Congress 2013–2015, ended

SAVE Act of 2014

Fact sheet

Latest action · Dec 11, 2014 Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedDec 11, 2014
  2. Passed HouseNot reached
  3. Passed SenateNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

Small Businesses Add Value for Employees Act of 2014 or the SAVE Act of 2014 - Amends the Internal Revenue Code, with respect to employer-established simple individual retirement accounts (IRAs) and pension plans, to:

  • repeal restrictions on rollovers from simple IRAs to qualified retirement plans;
  • allow employers to elect to terminate simple IRAs at any time during the year;
  • repeal the increased 25% penalty on premature distributions from simple IRAs within the first two plan years;
  • allow additional nonelective employer contributions to simple IRAs not exceeding 10% of compensation;
  • establish automatic deferral IRAs to permit the automatic enrollment of employees earning at least $5,000 in a preceding year;
  • establish secure deferral arrangements for automatically enrolling employees at 6% of pay with annual increases;
  • allow small employers a new tax credit for the cost of adopting safe harbor requirements for secure deferral arrangements;
  • allow a transfer of unused benefits in a flexible spending arrangement to a qualified retirement or eligible deferred compensation plan;
  • increase the tax credit for small employer pension plan startup costs; and
  • establish multiple small employer retirement plans that provide for automatic employee contributions.

Requires: (1) the Secretary of the Treasury to promulgate regulations regarding the timing of notices to participants in automatic contribution pension plans; (2) the Office of Financial Education of the Department of the Treasury to develop and implement an outreach plan to educate small businesses on the types and benefits of available retirement plans; (3) the Secretaries of the Treasury and Labor to develop recommendations for small businesses to improve retirement outcomes; and (4) the Secretary of the Treasury, in consultation with the Secretary of Education, to develop age-appropriate financial literacy curricula for elementary and secondary schools.

Amends the Employee Retirement Income Security Act of 1974 (ERISA) to: (1) exempt IRAs that permit payroll deductions from additional pension plan requirements, (2) require disclosures relating to lifetime income from pension plans and annuities, and (3) set forth safe harbor criteria for the selection of an annuity contract and an insurer.

Cosponsors 1

Members who signed on, in the order they did. All signed on Dec 11, 2014.

SeatCosponsorSigned on
R-WADavid G. ReichertOriginalDec 11, 2014

Actions 2

Everything that happened, newest first.

  1. Dec 11, 2014Introduced in House
  2. Dec 11, 2014Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Related bills 4

Companion bills and other measures the record links to this one.

BillTitleRelationshipLatest action
S 1145Lifetime Income Disclosure ActRelated billJun 12, 2013
S 1970Retirement Security Act of 2014Related billJan 29, 2014
HR 2171Lifetime Income Disclosure ActRelated billJul 8, 2013
HR 4376Retirement Security Act of 2014Related billJun 13, 2014

Subjects

Assigned by the Library of Congress. Policy area: Taxation.

Text 1

Each version as it was printed, newest first.

  1. Dec 11, 2014Introduced in House

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov.