A proposed savings cap of $3 million that is included in President Obama’s budget proposal would unfairly punish savers, the American Society of Pension Professionals and Acturies said Friday.
The president's plan, which is expected to be released next week, would place a cumulative limit on individual tax-favored retirement savings accounts, including IRA rollovers.
“We vigorously oppose this proposal not only because it would unfairly punish good savers but because it is a ‘plan killer,’” Brian Graff, the CEO of the group, said in a statement. “As business owners reach the cap, they will lose their incentive to maintain a plan and either shut down the plan or greatly reduce benefits. This would leave workers with a greatly diminished plan or without any plan at all.”