Family Savings Act of 2018

Family Savings Act of 2018

This bill modifies the requirements for employer-provided retirement plans and tax-favored savings accounts.

With respect to employer-provided retirement plans, the bill modifies requirements regarding:

• multiple employer and pooled employer plans,
• nonelective contributions to 401(k) plans,
• loans,
• the portability of lifetime income investments,
• the treatment of custodial accounts upon termination of section 403(b) plans,
• retirement income accounts for church-controlled organizations,
• required minimum distributions,
• retirement plan contributions picked up by government employers for new or existing employees,
• elective deferrals by members of the Ready Reserve of a reserve component of the Armed Forces, and
• nondiscrimination rules.

The bill modifies requirements for other tax-favored savings account to:

• treat taxable non-tuition fellowship and stipend payments as compensation for the purpose of an Individual Retirement Account (IRA),
• repeal the maximum age for traditional IRA contributions,
• allow individuals to establish tax-favored universal savings accounts,
• expand the purposes for which qualified tuition programs (commonly known as 529 plans) may be used, and
• allow certain penalty-free withdrawals from retirement plans if a child is born or adopted.

Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov