On September 27, 2018, the House approved two of three bills of the Tax Reform 2.0 package. The Family Savings Act of 2018 (H.R. 6757), which includes retirement and savings provisions, was approved on a 240-177 vote. The American Innovation Act of 2018 (H.R. 6756) was approved 260-156.

"These two bills ensure American families have the resources they need to save more and earlier and give future entrepreneurs the tools to move from the kitchen table to Main Street and beyond," House Ways and Means Committee Chairman Kevin Brady (R-TX) said following the votes.

The Family Savings Act of 2018 includes provisions that would: (1) create Open Multiple Employer Plans (MEPs); (2) ease portability of lifetime income investments in plans; (3) repeal the maximum age for contributing to a traditional IRA; (4) establish Universal Savings Accounts; (5) expand Section 529 plans; and (6) allow penalty-free, but not tax-free, withdrawals from qualified retirement plans for expenses related to the birth or adoption of a child.

The House Rules Committee yesterday added to the bill provisions that: (1) eliminate the provision requiring a study of the PBGC's single employer insurance program (without providing PBGC premium relief for cooperatives); (2) provide a safe harbor for satisfying fiduciary obligations with respect to the selection of an annuity provider for a retirement plan investment option; and (3) provide that an unborn child can be treated as a designated beneficiary for a 529 education account.

During House floor debate today, Rep. Ron Kind (D-WI) lamented the omission of the limit on "inherited IRAs" that was previously included as a revenue offset in the Retirement Enhancement and Savings Act (RESA).

The American Innovation Act of 2018 would: increase the deduction for certain start-up costs from $5,000 to $20,000, and increase the phase-out from costs in excess of $50,000 to $120,000 (excess costs would continue to be amortized ratably over 180 months); and provide an exception to current rules that limit the use of net operating losses and certain tax credits when there is an ownership change.

The Protecting Family and Small Business Tax Cuts of 2018 (H.R. 6760), to make permanent certain Tax Cuts and Jobs Act (TCJA) provisions, will be considered on the House floor on September 28, 2018.

None of the bills are expected to be taken up in the Senate prior to the midterm elections. Retirement provisions are seen as having the best chance of being enacted during the post-election lame-duck session.

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