House OKs More Cash for Retirement Plans Washington Times (05/04/01) Vol. 105, No. 16 p.B8; Ramstack, Tom
Employment policy analysts say the bill that the House passed
May 2 will benefit employers. The bill allows citizens to contribute
more tax-preferred money to their personal retirement funds, increasing
the deferred tax-contribution limits for IRAs and 401(k) plans, and is
also intended to encourage employers to offer traditional pensions. The
legislation is designed to divert many retirees from an overdependance
on Social Security benefits. Rep. Benjamin L. Cardin (D-Md.) predicts
that the Senate will pass the bill during its current session.
Employment Policies Institute chief economist Dick Toikka says that
while the bill could increase employer costs in the short term, in the
long run it could let them reduce some of their financial risks.