Industry & Regulatory News

Effective April 1, 2025, the maximum aggregate bankruptcy exemption amount for IRAs increased from $1,512,350 to $1,711,975. This exemption amount is subject to cost-of-living adjustments (COLAs), having risen from an initial exemption limit of $1,000,000 as enacted within the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Public Law 109-8. The limitation is reviewed every three years and increased if COLA measures warrant.

There is no maximum exemption for assets accumulated in employer-sponsored retirement plans.

Representatives Greg Steube (R-FL) and French Hill (R-AR) have introduced the Catch-Up Act to allow married individuals to make catch-up contributions to their spouse’s health savings account (HSA). While individuals are permitted to make catch-up contributions to their respective HSA, they are currently not allowed to make catch-up contributions to the HSA of their spouse.

The Federal Emergency Management Agency (FEMA) issued a Major Disaster Declaration on April 4, 2025, for Virginia severe winter storms and flooding, for the incident period of February 10 – February 18, 2025. 

Representative Byron Donalds (R-FL) has introduced H.R. 2544, the Financial Freedom Act to prohibit the Secretary of Labor from constraining the range or type of investments that may be offered for participant directed retirement accounts. The proposal has been referred to the House Committee on Education and Workforce for further consideration.

Representative Kevin Hern (R-OK) has introduced H.R. 2436, a bill that would allow distributions for funeral expenses of the account beneficiary of a health savings account (HSA) as a qualified distribution. The aggregate amount treated as funeral expenses would be limited to $5,000.

The Department of Labor has issued Field Assistance Bulletin (FAB) 2025-02 and accompanying single employer and multiemployer model notices updating notice requirements for defined benefit plans pursuant to Section 343 of SECURE 2.0. FAB 2025-02 uses a Q&A format to explain the methods that single employer defined benefit pension plans use to measure the value of assets, value of liabilities, and funding level.

The Pension Benefit Guarantee Corporation (PBGC) has issued a final rule updating interest assumptions under the asset allocation regulation for plans with valuation dates in the second quarter of 2025.

Representatives David Kustoff (R-TN) and Judy Chu (D-CA) previously introduced H.R. 517 the Filing Relief for Natural Disasters Act. The bill would allow the governor of a state or territory to extend a federal tax filing deadline in the event of a state-declared emergency or disaster, which happens automatically for federally declared disasters.

Representative Lauren Underwood (D-IL) and several co-sponsors have reintroduced the Women's Retirement Protection Act. Bill text for H.R. 2023 is now available.

Representative John Moolenaar (R-MI) has introduced H. R. 2067, the Protecting Americans’ Retirement Savings (PARSA) Act.