On May 23, members of the Senate Finance Committee met for one of 10 private briefings on tax reform options. This briefing was on “economic security” topics, including retirement savings. While no specific recommendations were made, the paper that committee staff prepared for the briefing included proposals that would decimate the private retirement system, including Simpson-Bowles type proposals to “significantly reduce or repeal” the tax incentive for retirement savings and the proposal to convert the current exclusion into a uniform refundable credit. President Obama’s $3 million cap on retirement savings and 28% cap on the tax benefit were among other options presented.
ASPPA/NAPA has been actively lobbying to protect the incentives for retirement savings, and will continue to do so. It’s clear that our job is far from over.
Judy Miller is Director of Retirement Policy for NAPA and ASPPA.
