AT PRESS TIME, THE SECURE ACT still needed to pass the U.S. Senate, but it appears to have bipartisan support, based on the 417–3 vote it received in the House of Representatives in late May. If it passes, retirees and those saving for retirement can expect some exciting changes. The Tax Cuts and Jobs Act of 2017 did not really touch on retirement reform.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act creates a safe harbor for employers to offer annuities. This has become a focal point of retirees; according to studies, many retirees feel more comfortable knowing they have a steady stream of income throughout their life.

The bill will also make it easier for smaller businesses to offer and implement retirement plans. Many small businesses feel it is expensive and a burden for them to offer a plan. Tax credits may offer an enticement to change their way of thinking. The government is looking to do that. Additionally, the SECURE Act may offer part-time workers the ability to join the company retirement plan. Businesses also would have the opportunity to join together and form multiple IRA plans which would allow them to get better pricing and better investing opportunities for their employees.

The bill would also raise the required minimum distribution age from 70.5 to 72 years. The required minimum distribution age is the age when the owners of retirement plans need to begin taking distributions out of the plan, whether they want to or not. This is how the government begins to collect taxes on those dollars built up in an individual’s plan for many years, even decades.

Also addressed is the age limitation on IRA contributions. Currently, individuals cannot contribute after age 70.5, but this limitation would be removed so people who work later in life (you need to have earned income in order to contribute to a plan) will be able to contribute to an IRA for as long as they choose.

Another nice feature of the proposed plan would allow a new parent to withdraw up to $5,000 from a retirement plan to cover expenses related to a new baby or adoption without triggering the 10 percent penalty if the individual is younger than age 59.5.

As this bill may become law, and if you are the type of individual who would take comfort in having a known income stream coming from retirement funds, now may be the time to speak with your financial advisor to get the ball rolling. It is never too early — or too late — to save and plan for your retirement. The SECURE Act has bipartisan support because employees just don’t receive pensions as they did decades ago. The employee now must steer that ship, as employers are less likely to do so.

The content of this article is for informational purposes only. It is not intended to be a substitute for professional financial advice. Always seek the expertise of a certified financial advisor or other qualified provider with any questions you may have regarding personal finance, investment and money-related issues.