Advocacy in action blog

Retirement planners can breathe a sigh of relief.

The IRS has delayed implementing a provision of the SECURE 2.0 legislation that would require retirement plan catch-up contributions by high-income earners to be made as after-tax Roth-style contributions rather than pretax contributions. The legislative language states that the change is effective after 2023, which would have presented unworkable communications, record-keeping, and implementation challenges to plan sponsors and participants as well as advisors. Prior to this fix, some plan sponsors had said they would likely have to eliminate the ability of employees to make catch-up contributions.

Congress has begun its August recess, and members of the National Association of Insurance and Financial Advisors (NAIFA) are capitalizing on lawmakers’ annual working session in their home districts by meeting with their Representatives and Senators to strengthen grassroots relationships and discuss issues important to financial professionals and their clients.

Each year, NAIFA capitalizes on the grassroots momentum created by our state chapters' Legislative Days and the national Congressional Conference by coordinating in-district meetings with members of Congress during the August legislative recess. You should be a part of it and invite colleagues to join, too.

NAIFA applauds the leadership of Representatives Young Kim (R-CA) and Joyce Beatty (D-OH) on the relaunch of the Congressional Financial Literacy and Wealth Creation Caucus for the 118th Congress. The Congresswomen are an excellent duo to co-chair this bipartisan group of legislators committed to empowering Americans with the tools needed to build wealth and achieve financial stability.

The U.S. House of Representatives passed H.R.500, the Financial Exploitation Prevention Act of 2023, by a bipartisan vote of 419-0 on January 30. H.R. 500 was introduced by Rep. Ann Wagner, (R-MO), Chairwoman of the House Financial Services subcommittee on Capital Markets. 

NAIFA CEO Kevin Mayeux is a contributing author of an article in the publication Real Clear Policy arguing in favor of federal legislation allowing remote online notarization (RON). NAIFA has been a strong proponent of RON and urged passage of the SECURE Notarization Act because it would set a national standard and be a great benefit to NAIFA members and their clients who routinely complete financial transactions that require notarized documents.

On July 28, the House Financial Services Committee voted to advance a bipartisan bill requiring the Securities and Exchange Commission to create a new form for registering index-linked annuities, which allows investors to save for retirement in a more streamlined process.

On July 27, the House of Representatives passed H.R.3962 the Securing and Enabling Commerce Using Remote and Electronic Notarization Act (the SECURE Notarization Act). The bill authorizes a notary public to notarize electronic records related to interstate commerce remotely, subject to specified procedures. 

NAIFA and other trade associations have sent a letter to influential members of the House Energy and Commerce Committee expressing concerns with the discussion draft of the American Data Privacy and Protection Act, which is a national uniform privacy law proposal.

NAIFA supports federal laws and regulations protecting the confidentiality of personal information and believes policy at the federal level will help avoid problems a variety of confusing and potentially contradictory state laws would cause. NAIFA members provide financial products, services, and advice to Main Street American families and businesses. Their clients entrust them with sensitive personal information, so it is among the highest priorities for our industry that we keep that information secure.

The NAIFA-supported SECURE Notarization Act was filed with Rules as an amendment (AMDT #543) to the National Defense Authorization Act (NDAA) on July 8 by Rep. Madeleine Dean (D-PA), Rep. Kelly Armstrong (R-ND), Rep. Ed Perlmutter (D-CO), Rep. Guy Reschenthaler (R-PA), and Rep. Veronica Escobar (D-TX).

NAIFA joined with industry partners in a letter to express strong support for NDAA amendment #543. The text of the amendment is taken from H.R. 3962, the SECURE Notarization Act, which has the strong, bipartisan support of 113 cosponsors.