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US S4406

US S4406
Advancing Auto-Portability Act of 2022


summary

Introduced
06/15/2022
In Committee
06/15/2022
Crossed Over
Passed
Dead
01/03/2023

Introduced Session

117th Congress

Bill Summary

A BILL To amend the Internal Revenue Code of 1986 to provide incentives for the use of automatic portability arrange- ments under defined contribution plans, and for other purposes.

AI Summary

This bill aims to amend the Internal Revenue Code to provide incentives for the use of automatic portability arrangements under defined contribution plans. The key provisions include: (1) a prohibited transaction exemption that allows automatic portability providers to execute transfers of assets from an individual retirement plan to an employer-sponsored retirement plan where the individual is an active participant, provided certain conditions are met; and (2) a $500 tax credit for eligible employers who adopt an automatic portability arrangement as part of a qualified employer plan. The bill seeks to encourage the private sector to develop automated solutions to improve defined contribution plan portability and reduce the cash-out of retirement savings when employees change jobs.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

Read twice and referred to the Committee on Finance. (on 06/15/2022)

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