Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Member Ron Wyden (D-OR) on April 1, 2019, introduced the Retirement Enhancement and Savings Act (RESA) of 2019. The bill is substantially the same as the bill that cleared the Finance Committee by a 26-0 vote in September 2016. Its principal provisions closely track the SECURE Act that is scheduled to be marked up in the House Ways and Means Committee on Tuesday, April 2. The House bill contains additional provisions that are not included in the Senate bill.

One significant difference between the House and Senate bills is the principal revenue raiser. While both bills would use the stretch IRA, they differ in how it is constructed. Both bills would exclude amounts paid to spouses, minor children, chronically ill or disabled individuals, and beneficiaries who are not more than 10 years younger than the decedent from the new pay-out requirements. The House bill would require those amounts not paid to eligible individuals to be paid within 10 years of the accountholder's death. The Senate bill, however, provides a $400,000 per beneficiary exclusion for individuals not among the eligible individuals.

The bill and a summary are attached.

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ATTACHMENT

RESA Bill

RESA Summary