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.
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