Proposed AMORE Act allowing catch-up contributions for retirement accounts
The AMORE Act would allow individuals to compare their actual contributions to retirement accounts such as 401(k) plans
WASHINGTON, D.C. – U.S. Sens. Ted Cruz (R-Texas), Thom Tillis (R-N.C.), David Perdue (R-Ga.), and Kelly Loeffler (R-Ga.) introduced the Addressing Missed-savings Opportunities for Retirement due to an Epidemic Act (AMORE Act), legislation that would allow individuals facing financial challenges and who are unable to make contributions to their tax-advantaged retirement accounts in 2020 to make “catch-up” contributions to these accounts in the coming years.
Specifically, the AMORE Act would allow individuals to compare their actual contributions to retirement accounts such as 401(k) plans, 403(b) plans, and IRAs made in 2020 to the annual contribution limits on these various retirement accounts. The legislation would then permit individuals to make “catch-up” contributions in 2021 and 2022 equal to the difference between their actual contributions and current federal limits on these accounts.
Upon introducing the AMORE Act, Sen. Cruz said:
“The unprecedented economic challenges we’re facing have threatened the livelihoods and life savings of millions of hardworking men and women across the country. As we work to get our economy back on its feet and help Americans safely return work, we must also help ensure this crisis does not result in a permanent detriment to Americans’ retirement savings. That’s why I’m introducing the AMORE Act. By allowing catch up contributions, this legislation will give people the flexibility they need to continue saving for the future.”
Sen. Tillis said:
“North Carolinians are making incredible sacrifices during this pandemic, but their financial future should not be part of that sacrifice. With so many still unemployed, paying off large medical bills, or trying to store away emergency funds in the midst of this, North Carolinians are having to delay their retirement contribution, adding more stress to families. I am proud to co-introduce this legislation so that families can have peace of mind knowing their financial future will not be effected.”
Sen. Perdue said:
“With millions of Americans unemployed and many more faced with reduced hours, both employers and employees have scaled back retirement contributions to meet their current day-to-day needs. The AMORE Act will allow hardworking Americans to catch up on their retirement contributions as the economy recovers. This critical bill helps preserve millions of Americans’ retirement plans while removing one less worry in these unprecedented times.”
Sen. Loeffler added:
“With widespread unemployment and slowed business activity resulting from the pandemic, many workers across Georgia – and the country – have been unable to continue their financial planning for retirement this year. Families continue to confront the immediate and often harsh impact of the coronavirus. The AMORE Act will provide individuals more flexibility to contribute makeup payments to their 401Ks and other retirement savings accounts and give Georgians greater opportunities to build their investments as they save for their futures.”
Americans for Tax Reform President Grover Norquist endorsed the AMORE Act, saying:
“I endorse and urge Senators to support Senator Cruz’s legislation to provide flexibility to Americans contributing to their retirement savings accounts. There are an estimated 58 million Americans with a 401(k) and 46 million Americans with an IRA. Due to the economic hardships caused by COVID-19, many of these Americans may not have the cash to properly utilize their savings accounts. Senator Cruz’s legislation wisely recognizes this by allowing Americans to make a catch-up contribution in 2021 or 2022 for any unused 2020 contribution.”
The full text of the legislation can be read here.
In addition, Sen. Cruz has taken a number of actions to help those struggling with the impacts of this pandemic. Sen. Cruz introduced the LIFT UP Act, legislation that would provide small businesses debt relief in the CARES Act for Small Business Administration (SBA) disaster Loans.
Last month, Sen. Cruz introduced the Work Safe Act, legislation that would provide tax credits to businesses that test employees for COVID-19 every week in states where the infection rates are above the national average.
For COVID-19 information and additional resources, visit www.cruz.senate.gov/coronavirus/.
*Courtesy of Cruz Press Office