The AMORE Act is intended for those who couldn’t afford to make contributions because of COVID-19. The introduced COVID Catch-Up Bill would allow individuals to compare their actual contributions to retirement accounts such as 401(k) plans.
Republican senators have introduced a bill that would allow people who can’t afford to make contributions to their tax-advantaged retirement accounts in 2020 to make “catch-up” contributions to their accounts in the following years.
The “Addressing Missed-savings Opportunities for Retirement due to an Epidemic Act” (AMORE Act), is designed to help individuals facing financial challenges as a result of COVID-19. Specifically, the AMORE Act would allow individuals to compare their actual contributions to retirement accounts such as 401k plans, 403(b) plans, and IRAs made in 2020 to the annual contribution limits on these various retirement accounts, and permit them to make the catch-up contributions in 2021 and 2022 equal to the difference between their actual contributions and current federal limits on these accounts.
Why Introduce the AMORE Act?
According to conservative advocacy group Americans for Tax Reform, there are an estimated 58 million Americans with a 401(k) plan and 46 million with an IRA. The bill is the latest in a line of proposed and passed legislation intended to help people bolster their retirement savings.
The senators who have introduced the legislation are Ted Cruz, R-Texas; Thom Tillis, R-N.C.; David Purdue, R-Ga.; and Kelly Loeffler, R-Ga. Upon introducing the AMORE Act, senator Ted Cruz stated “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 to work, we must also help ensure this crisis does not result in a permanent detriment to Americans’ retirement savings.”
Senator Tillis continued “North Carolinians are making incredible sacrifices during this pandemic, but their financial future should not be part of that sacrifice.”
Loeffler concluded: “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. … The AMORE Act will provide individuals more flexibility to contribute payments to their 401(k)s and other retirement savings accounts.”
The full text of the AMORE Act legislation can be read here.
COVID-19 and Your Retirement Planning
From the Heroes Act to the CARES Act, to the SECURE Act; there are a lot of changes arising in the retirement planning world since corona virus hit. In fact 55% of Americans are changing their retirement savings strategies due to COVID-19, according to MassMutual.
If the financial implications of the COVID-19 crisis begin to affect your finances, know what tools you have available and what steps you should take, and be aware of new provisions that are coming into play.
There’s no need to go it alone in any kind of market, much less the current downturn. If you don’t already have a relationship with a financial advisor, now’s an ideal time to consider finding one.
Talking with CKS Summit Group could help you evaluate your 401(k) options in light of your entire financial picture. Reach out to us here to set up a complimentary strategy session where we will assess the best customized plan for your individual needs.
With a deep breath and a better understanding of your options – and some professional advice – you’ll better chart a path offering smoother sailing in today’s rough waters.
