Two proposals to revamp the tax code as it relates to retirement plans and pensions will only hurt Americans' ability to save for retirement, according to industry experts.
They also have the potential to dissuade plan sponsors, especially small businesses, from offering qualified defined contribution plans, which would reduce the number of people able to contribute to a retirement plan.
The 20/20 contribution plan, which is mentioned in the Obama Administration's "The Moment of Truth" federal deficit reduction plan, would cap annual tax-preferred contributions to the lower of $20,000 or 20 percent of income, affecting both high income and low income workers, according to Jack VanDerhei, research director for the Employee Benefit Research Institute, in his testimony before the Senate Finance Committee on Sept. 15.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
