Senate Bill Would Allow Catch-Up Contributions in 2021, 2022

The proposal would allow catch-up contributions in those years equal to the difference between an individual’s actual contributions and current federal limits on these accounts.

Four Republican senators have introduced a bill, the Addressing Missed Savings Opportunities for Retirement due to an Epidemic (AMORE) Act that would allow people facing financial challenges due to the coronavirus and who were unable to make contributions to their tax-advantaged retirement accounts to make catch-up contributions to these accounts in the next two years. 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.

Specifically, the AMORE Act would allow people to make catch-up contributions in 2021 and 2022 equal to the difference between their actual contributions and current federal limits on these accounts.

Cruz said, upon introducing the AMORE Act: “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.”

Tillis said: “North Carolinians are making incredible sacrifices during this pandemic, but their financial future should not be part of that sacrifice.”

Loeffler said: “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.”