NU Online News Service, Dec. 19, 9:35 a.m. – CIGNA Retirement & Investment Services, Hartford, says employers should do more to tell workers about the effects of the new federal tax reform law on retirement plan contribution limits.
The Economic Growth and Tax Relief Reconciliation Act allows all members of 401(k) plans and similar plans to deduct more contributions from taxable income starting Jan. 1, 2002. EGTRRA includes even more generous “catch up” contribution limits for older workers.
CIGNA Retirement, a unit of CIGNA Corp., hired SWR Worldwide, Washington, to survey 504 human resources executives about their response to the new EGTRRA retirement contribution provisions.
Two-thirds of the HR executives said employees were worried about having enough financial resources to retire, but 30% said employees were unaware of the 401(k) contribution increases in EGTRRA.
Only 30% told researchers they had educated workers about how the new EGTRRA provisions would affect them, CIGNA says.
CIGNA hopes to help fill in the gaps by introducing new EGTRRA courses for human resources executives in January.