The Independent Insurance Agents of America is supporting a new bipartisan congressional proposal that would boost retirement savings.
Reps. Rob Portman, R-Ohio, and Ben Cardin, D-Md., offered the Comprehensive Retirement Security and Pension Reform Act. Over 200 bipartisan House members are cosponsoring the legislation.
The so-called Portman/Cardin bill proposes to increase individual retirement savings by expanding Individual Retirement Accounts and facilitating increased portability of selected retirement plans.
It would accomplish these goals by: Increasing contribution limits from the current $2,000, to $3,000 this year, to $4,000 in 2002, and $5,000 in 2003. There would be indexing for cost-of-living adjustments following 2003; establishing a catch-up provision for Americans over the age of 50 that would allow them to save $5,000 immediately; and Increasing the portability of 401K plans for participants investing their money in these retirement programs.
In addition, the Portman/Cardin bill would revise requirements relating to plan loans for Subchapter S owners, partners and sole proprietors.
“If Americans are going to be encouraged to save for their retirement, the tax code must provide more of an incentive for them,” says Fulwider, executive vice president of the Wuestenberg Agency, West Liberty, Iowa. “The Portman/Cardin bill will offer attractive incentives that Americans can use to save for their golden years.
“Today, Americans cannot solely rely on Social Security and employer-provided programs to provide 100 percent of funding for their retirement,” explains Fulwider.
“The Comprehensive Retirement Security and Pension Reform Act offers individuals a way to increase their retirement savings while also providing them a tax savings today. It’s really the best of both worlds.”
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