The current version of the Build Back Better reconciliation bill in the U.S. House of Representatives no longer includes the two IRA changes that we found most troubling and on which our previous communications and advocacy focused. Those proposals would have prohibited IRAs from holding (1) securities that require buyers to be accredited investors including equity or debt investments in small businesses and (2) investments in entities in which the IRA owner is a 10% owner or a director or officer.
The provisions would severely impact the ability of small businesses to grow and create jobs by eliminating IRA investment in private placements – a source of capital on which those businesses have historically relied. The provisions also would greatly reduce investor choice for retirement savers.
The deletion of these troubling provisions from the bill currently under consideration by the U.S. House of Representatives is a great step in the right direction. However, the process is not over. The House is expected to vote on the bill as early as the week of November 15. The Senate is also developing its own reconciliation bill. Ultimately, the House and Senate must agree on the common form of bill to be passed in both chambers and signed into law by the President.
We’re Advocating for Investor Choice
We are heartened by where things stand today, but the process is not over, and we will continue to advocate on behalf of all of our clients, as well as the investment sponsors and advisors that utilize Millennium Trust’s services, until the very end.
Thank Your Elected Representative
We encourage you to contact your House representatives and thank them for supporting the removal of Sections 138312 and 138314 of the U.S. House of Representatives reconciliation bill. Let them know that by taking this action, they have protected investor choice, promoted retirement security, and fought for American workers and the small businesses that employ them — all of which Millennium Trust has proudly championed for years.