A sweeping retirement savings measure signed into law by the president last week will inevitably affect most retirement savers, for better or for worse, MarketWatch reported.

The SECURE legislation — which stands for “Setting Every Community Up for Retirement Enhancement” — puts into place numerous provisions intended to strengthen retirement security across the country.

The bill broadens access to retirement savings plans, with a provision that offers small businesses tax incentives for setting up automatic enrollment in retirement plans for their workers. It also allows small businesses to band together to form multiple employer plans aimed at making plans affordable for smaller companies. 

Among its numerous provisions, the SECURE Act opens the gates for more employers to offer annuities as investment options within 401(k) plans. Currently, employers hold the fiduciary responsibility to ensure these products are appropriate for employees’ portfolios, but under the new rules, the onus falls on insurance companies, which sell annuities, to offer proper investment choices.

Iowa Republican Sen. Chuck Grassley and Oregon Democratic Sen. Ron Wyden authored the Senate version of the bill, which contained many of the provisions that have now been enacted with the SECURE Act. Grassley helped push for inclusion in the year-end appropriations package. 

“This legislation will help more Americans save for their retirement and help more American businesses invest in their employees’ future financial security,” Grassley said in a statement last week. “Government should be doing everything it can to help Americans save more of their own hard-earned money so they can retire with peace of mind, dignity and independence. Passing this bipartisan bill was one of my top priorities as chairman of the Senate Finance Committee this Congress. I’m glad after months of delay it will finally become law.”. 

The SECURE provisions also require businesses offering retirement plans to cover certain part-time workers, and allows penalty-free withdrawals from retirement accounts to cover birth and adoption expenses. The legislation further expands 529 college savings plans to cover apprenticeship programs and certain student loan payments, and includes changes to help certain home health workers increase retirement-plan contributions.

Retirement account holders will also be able to wait longer before having to withdraw their savings. Previously, qualified account holders such as those with a 401(k) or IRA had to withdraw required minimum distributions in the year they turned age 70½. The SECURE Act increases that age to 72. 

The bill also eliminates the maximum age for traditional IRA contributions, which was previously capped at 70½ years old. “As Americans live longer, an increasing number continue employment beyond traditional retirement age,” the House Committee on Ways and Means said in a summary of the bill.

“With the SECURE Act being passed into law, Americans now have more of the tools they need to achieve a bright financial future,” said Marc Cadin, president and CEO of the American Association of Life Underwriters, an insurance industry group that pushed for its passage. “We look forward to continuing our work to address the retirement savings gap in our nation and putting more Americans on the path to financial security.”