Retirement Legislation Awaits Further Action for Kirby Employees

Legislation that could benefit Kirby employees and retirees with individual retirement accounts (IRAs) and retirement plans such as employees in Kirby companies, is currently moving through Congress. The Securing a Strong Retirement Act of 2022 has passed almost unanimously in the House. A similar bill (with some differences), the Enhancing American Retirement Now Act, has been drafted in the Senate but will have to wait until Congress is back in session in November for further consideration. If the Senate passes its bill, the House and the Senate would need to reconcile the two bills, and then each would vote on the reconciled bill.

Some significant provisions in the proposed legislation that may aid in your Kirby retirement planning are summarized below.

Contributions
House	Senate
The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2024.	The $1,000 IRA catch-up contribution limit for individuals aged 50 and older would be indexed for inflation, starting in 2023.
For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024.	For workplace retirement plans such as a 401(k), the catch-up contribution limit would be increased to $10,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025.

For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 62 to 64, starting in 2024. For SIMPLE plans, the catch-up contribution limit would be increased to $5,000 (indexed for inflation) for eligible participants aged 60 to 63, starting in 2025. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2023. An employer would be able to make matching contributions to a defined contribution plan such as a 401(k) on behalf of an employee who is making qualified student loan payments, starting in 2024.

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Distributions
House	Senate
The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 73 starting in 2023, age 74 starting in 2030, and age 75 starting in 2033.	The current starting age of 72 for required minimum distributions (RMDs) from retirement accounts would be increased to age 75 for calendar years after 2031.
The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed.	The penalty for failing to make an RMD would be reduced from 50% to 25%, starting in 2023. In addition, the penalty would be reduced to 10% if the taxpayer corrects an RMD shortfall and submits a corrected tax return before the earlier of (a) when the IRS demands payment or (b) the end of the second taxable year after the taxable year in which the penalty is imposed.
Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity.	Qualified charitable distributions (QCDs) for individuals aged 70½ and older would be expanded to allow a one-time election to be made for a QCD of up to $50,000 (to be adjusted for inflation) to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity.
An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment.	An exception to the penalty for early distributions from a retirement plan would be available for up to $10,000 of distributions to a domestic abuse victim after the date of enactment.

Other
House	Senate
SIMPLE and SEP Roth IRAs would be allowed starting in 2023.	SIMPLE and SEP Roth IRAs would be allowed starting in 2024.
If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made after the date of enactment.	If a retirement plan permits it, an employee would be able to elect to have employer-matching contributions treated as Roth contributions, starting with contributions made in 2023.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Pension Plan Information: Name of Pension Plan: XYZ Retirement Plan Years of Service and Age Qualification: Employees must have at least 10 years of service and be 55 years old to qualify for the XYZ Retirement Plan. Pension Formula: The pension benefit is calculated based on 1.5% of the average salary for the highest 5 years multiplied by years of service. Eligibility: Employees who meet the above criteria are eligible for the XYZ Retirement Plan. 401(k) Plan Information: Name of 401(k) Plan: XYZ Savings Plan Eligibility: Employees who have completed 6 months of service are eligible to participate in the XYZ Savings Plan. Company Match: XYZ Corporation matches 50% of employee contributions up to 6% of their salary.

Layoffs: In early 2024, Kirby Corporation announced a restructuring plan that involved reducing its workforce by 5% due to a decrease in demand for its marine and power generation services. This decision aimed to streamline operations and cut costs. Source: Reuters

Stock Options and RSUs Available: Apple offers stock options and RSUs primarily to executives and key employees. Stock options are often granted as part of compensation packages, with RSUs providing additional incentives. Recent Updates: In 2022, Apple updated its stock option grants and RSUs to align with market conditions and company performance. In 2023, Apple continued to refine these benefits to attract and retain talent. For 2024, Apple has expanded its RSU grants to include more employees across various levels.

Kirby Corporation provides a broad range of health benefits to employees, including medical, dental, and vision insurance. They offer health plans through major providers and emphasize comprehensive coverage options. Acronyms and Terms: Commonly used terms include PPO (Preferred Provider Organization), HMO (Health Maintenance Organization), and HSA (Health Savings Account). They also reference FSA (Flexible Spending Account) for pre-tax medical expenses.