A concurrent resolution was introduced in the U.S. Senate and House this week in support of current tax incentives for retirement savings.
The bipartisan resolution, which was introduced by Sen. Johnny Isakson, R-Ga., and seven others, noted that the country’s tax incentives for retirement savings “provide important benefits to Americans to help plan for a financially secure retirement.”
It also pointed out that the taxation of amounts contributed to pension and retirement plans is deferred, not lost.
Cathy Weatherford, president and CEO of The Insured Retirement Institute (IRI), said Friday she supports the resolution.
“The shift from defined benefit to defined contribution plans, longer life spans and the rising costs of health care are among the challenges making planning for and attaining financial security during retirement more difficult,” she said. “With more of the burden of saving for retirement placed on the shoulders of Americans, now more than ever, we need to protect the incentives available that help Americans attain financial freedom and peace of mind in retirement.”
This week was National Retirement Planning Week, an effort to help Americans focus on their long-term financial goals and plan for a financially secure retirement.
“It is only fitting that our policymakers would note the importance of these retirement saving incentives during a week dedicated to helping Americans live financially secure during their retirement years. ... We look forward to continuing to work with our elected leaders to protect and preserve incentives that help Americans attain financial security during their retirement years,” Weatherford said.
The resolution, which also was supported in the House, also noted:
- Tax incentives for retirement savings play an important role in encouraging employers to sponsor and maintain retirement plans and encouraging participants to contribute to such plans;
- existing tax incentives have increased the number of Americans who are covered by a retirement plan; and
- A reformed and simplified federal tax code should include properly structured tax incentives to maintain and contribute to such plans and to strengthen retirement security for all Americans.