For retirees, the bill increases the age at which retires must take minimum monthly distributions, or RMD’s, from age 72 to 73, with graduated increases to age 74 in 2029, and age 75 in 2032.

For seniors who fail to take the RMD, the penalty is lowered from 50% to 15%. Included in the bill is a provision that would further reduce the penalty to 10% if it is corrected within a specified period.

For workers who have not yet gotten around to putting away money for retirement, the bill expands automatic enrollment in employer sponsored retirement plans like 401(k)’s and 403(b)’s. Workers will automatically be enrolled and contribute 3% of pretax income. Automatic contributions would increase yearly until they reach 10% of an employee’s pretax income.

For younger workers just entering the workforce, the bill allows them to take advantage of employer matching contributions by making their monthly student loan payments. Employers could contribute an amount matching the monthly student loan payment towards the employee’s retirement savings.

For workers who are getting close to retirement age and need to add come cushion to their savings, they can make catch-up contributions which will now be indexed to inflation. Workers 50+ can contribute an extra $1,000. Workers aged 62-64 will be able to contribute $10,000, an increase from $6,500 in the current legislation.