Proposal Allowing CITs in 403(b) Plans Clear House Committee

H.R. 1013, the Retirement Fairness for Charities and Educational Institutions Act introduced by Representatives Frank Lucas (R-OK) and several cosponsors in February was one of several bills advanced out of the House Financial Services Committee. The bill would allow collective investment trust (CIT) investments in 403(b) plans. A companion bill, S. 424, has been introduced in the Senate by Senator Katie Britt (R-AL).

While SECURE 2.0 amended the Internal Revenue Code to allow CITs for 403(b) arrangements, correlating amendments to securities laws that are required to fully implement the provision were omitted.