The full Senate passed by a 71-23 vote Thursday the Setting Every Community Up for RetirementEnhancement (Secure) Act as part of the year-end spendingbill.

The spending package is expected to be signed into law byPresident Donald Trump on Friday as the current continuingresolution funding the government expires.

Andy Friedman, founder and principal at The Washington Update,told our sister site ThinkAdvisor that the Secure Act, H.R. 1994, "affects IRA and 401(k) accountholders favorably by increasing the RMD age and eliminatingrestrictions on IRA contributions for certain workers."

The sweeping retirement bill also "curtails the use of'stretch IRAs,'" he said, "although that strategy remainsavailable."

Friedman pointed to other important aspects of the Secure Actthat he said are receiving less attention. For instance, Secureexpands "the availability of 401(k) plans for small businesses, andthat facilitate the use of annuities in 401(k) plans," opening upan opportunity that broker-dealers have overlooked.

"Now that small businesses may band together in a single 401(k)plan, a broker-dealer can set up a plan and offer it tosmall-business clients and potential clients," Friedman, former taxattorney for the NFL, explained. "Doing so provides a neededservice to small businesses, and an opportunity for the firm tocollect assets."

The annuity provisions also provide plan participants "with anoption to receive lifetime payouts," he said. "I suspect it willtake a while for plans to avail themselves of this opportunity.Plan sponsors will need time to understand how annuity contractswork. They then will have to prepare materials explaining thecontract terms to participants."

Sen. Patty Murray, D-Wash., ranking member of the Senate Health,Education, Labor and Pensions (HELP) Committee, applauded passageof Secure, stating the bill helps "bolsterretirement security for families across the country and address thefact that too many people face too many barriers to having thefinancial security they will need in retirement."

Murray said she's "particularly pleased we were able to take astep I've long pushed for to expand access to retirement plans tolong-term, part-time workers. This will help millions of peopleacross the country, and be especially helpful to women across thecountry who face an even steeper climb to retirement security, andwho are the majority of long-term, part-time workers."

The American Council of Life Insurers estimates that Secure willresult in 700,000 more American workers saving for retirement.

"The big winners with the enactment of the SECURE Act will beAmerican small businesses and especially workers preparing forretirement," said Kevin Mayeux, CEO of the National Association ofInsurance and Financial Advisors, in a Thursday statement. "SECUREgives more workers the opportunity to prepare for retirement andgives all retirement savers greater flexibility to create plansmeeting their individual needs."

READ MORE:

• Impact and opportunities in the SECUREAct
• With or without SECURE Act, industryon the precipice of new evolution
• What the SECURE Act means for annuities in401(k)s