From June 23, 2022 post.
Several provisions led by Sen. Chuck Grassley (R-Iowa), former chairman and current member of the Senate Finance Committee, were included in the Enhancing American Retirement Now (EARN) Act, which advanced out of committee with unanimous support yesterday.
“I’m glad several of my proposals were included in the EARN Act, which will build on the bipartisan success of the SECURE Act to expand and improve access to retirement savings. This includes specific provisions benefiting police officers, firefighters and other first responders to eliminate unnecessary barriers to the retirement benefits they deserve. I’ll continue working in a bipartisan manner to help Americans easily and effectively save for retirement,” Grassley said.
The bill now contains all provisions from the Improving Access to Retirement Act, which Grassley introduced last year alongside Sens. Maggie Hassan (D-N.H.) and James Lankford (R-Okla.); the Police and Fire Health Care Protection Act, which Grassley introduced in May alongside Sens. Sherrod Brown (D-Ohio), John Thune (R-S.D.) and Mark Warner (D-Va.); and the Charitable Conservation Easement Program Integrity Act, which Grassley introduced as chairman of the Finance Committee in 2020 alongside Sens. Ron Wyden (D-Ore.), Steve Daines (R-Mont.) and Debbie Stabenow (D-Mich.).
Grassley also successfully sought an amendment to modify the Putting First Responders First Act provision to ensure disabled law enforcement officers and other first responders are, immediately upon enactment of this bill, exempt from paying taxes on their disability benefits. Before Grassley offered his amendment, this tax exemption provision was not set to take effect until 2028. The cost associated with moving up the effective date is offset by the conservation easements provision, which will hold scam artists accountable and save taxpayers billions.
Improving Access to Retirement Act
This bill will build off the successful implementation of the SECURE Act and make improvements to allow more organizations and small businesses to participate in multiple employer plans (MEPs).
Specifically, the adopted provisions:
- Allow nonprofit employers to participate in multiple employer plans (MEPs) established by the original SECURE Act. MEPs allow employers to band together to offer a pension plan and take advantage of economies of scale;
- Clarify employers joining an MEP may claim the start-up credit for the first three years they participate in an MEP;
- Establish a safe harbor to allow certain pension plans to correct errors in administering automatic enrollment and escalation features for plans enrolling in an MEP; and,
- Permit employers to increase benefits provided under its retirement plan for a year up until its tax return due date for such year.
This bill is designed to make it easier for retired first responders to take advantage of a benefit designed to help them cover health expenses. It allows public safety officers to exclude up to $3,000 of pension income from tax, and it no longer requires that the payment be made directly from the pension plan to the health insurer.
Bipartisan Effort to End Abuse of Conservation Easements
When serving as chairman of the Finance Committee, Grassley opened a bipartisan investigation into the abuse of syndicated conservation-easement transactions, which may have allowed a number of taxpayers to profit from gaming the tax code and deprived the federal government of billions of dollars in revenue.
Based on the information gathered in this investigation, Grassley concluded that the IRS had strong reason for taking enforcement action against syndicated conservation-easement transactions. The full report can be found HERE.
Grassley then reintroduced the Charitable Conservation Easement Program Integrity Act to stop the abuse of conservation easements, save taxpayers billions of dollars and promote conservation in the U.S. Specifically, the proposal would generally disallow a charitable deduction if it exceeds 2.5 times (250 percent) of a partner’s original investment.
Original source can be found here
