NAGDCA’s Legislative Priorities
Each year NAGDCA advocates for a list of federal legislative priorities which are developed by the Legislative Committee and the Executive Board with the advice and support of the legislative affairs team and staff. NAGDCA’s legislative priorities represent solutions to the most pressing federal policy and technical problems facing NAGDCA’s members.
In March of each year, the Executive Board presents the priorities in small group meetings with key legislators and their staff on Capitol Hill, to ensure that the voice of all NAGDCA members is heard at the federal level.
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PROTECT AND ENHANCE GOVERNMENTAL DEFINED CONTRIBUTION PLAN FEATURES
ENHANCE INVESTMENT OPTIONS FOR 403(b) INVESTORS*
Permit Collective Investment Trusts (CIT’s) and separate accounts as investment vehicles in 403(b) plans and deemed IRA’s as they are in other governmental plans.
PRESERVE IMPORTANT UNIQUE PLAN FEATURES
NAGDCA is opposed to “Rothification” (requiring all or part of retirement plan contributions be made as Roth contributions), “plan consolidation” (the creation of a single new section of the IRS code, collapsing all defined contribution retirement plans into one), or any other plans that would eliminate current plan flexibility.
Accordingly, we oppose eliminating or reducing the special catch up provisions currently available in 457(b) plans which allow employees who are closer to retirement to save more.
SUPPORT NATIONAL RETIREMENT SECURITY MONTH**
To elevate the importance of personal retirement planning, we encourage the House and the Senate to introduce and pass a resolution to support National Retirement Security Month in 2022.
IMPROVE ROTH PLANS*
- Allow Roth 457(b), 401(k), and 403(b) plan participants to roll Roth IRA assets to their plans.
- Exempt designated Roth contributions from RMD rules, just as Roth IRA assets are exempt.
ENHANCE ADMINISTRATIVE EFFICIENCY AND PROMOTE SAVINGS*
- Permit non-spousal beneficiaries to roll assets to 457(b), 401(k), 401(a) and 403(b) plans.
- Eliminate the “first day of the month” requirement in 457(b) plans so participants can more easily change contribution amounts.
ENHANCE DISTRIBUTION CHOICE*
Allow Qualifying Charitable Distributions (QCDs) from 457(b), 401(a), 401(k) and 403(b) plans, as they are from IRAs.
*Provision is in the 2021 Cardin-Portman bill, S. 1770 (117).
**Senate adopted bipartisan resolution, S. Res. 404, endorsing NRSM 2021.