To amend the Internal Revenue Code of 1986 to provide incentives for the use of automatic portability arrangements under defined contribution plans, and for other purposes.
Advancing Auto-Portability Act of 2022
This bill allows employees to transfer their retirement account upon terminating their employment to a similar account with a new employer. Specifically, it makes such transfers automatic, subject to the right of employees to opt out. It imposes certain requirements upon an automatic portability provider, including a requirement that the provider acknowledge its fiduciary status and provide a notice in advance to an employee whose retirement account is being transferred that contains a description of the automatic portability transaction and any fees charged in connection with the transaction.
This bill also allows an eligible employer a $500 tax credit in the year that an automatic portability arrangement is adopted.
Read twice and referred to the Committee on Finance.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 480.
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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