Reps. Jim Gerlach, R-Pa., and Richard Neal, D-Mass., both members of the House Committee on Ways and Means, introduced a joint resolution on Thursday that would make it the “Sense of Congress” that current tax incentives for retirement savings should be retained in any reform of the tax code.
On the same day, Neal (left) also introduced two other bills—an auto IRA bill, The Automatic IRA Act of 2012, H.R. 4049, and a bill to simplify and enhance qualified retirement plans called the “Retirement Plan Simplification and Enhancement Act of 2012,” H.R. 4050—that his spokesperson told AdvisorOne was a “pretty comprehensive retirement plan bill.”
Both Neal and Gerlach commented on the joint resolution at an event on Capitol Hill held by the Aspen Institute called “Fiscal Reform and the Future of Lifelong Savings.”
At the event, Gerlach (right) said that the joint resolution—which currently has 100 co-sponsors—“underscores the importance” of the retirement security aspect of the tax code.
Neal commented that the “stunning” statistic that half of Americans go to work each day and aren’t covered by a retirement plan at work is just another sign that “we need to use the tax code to boost retirement savings and personal savings as well.”
The bipartisan resolution provides that it is the “Sense of the Congress” that:
- tax incentives for retirement savings play an important role in encouraging employers to sponsor and maintain retirement plans and encouraging participants to contribute to such plans;
- existing tax incentives have increased the number of Americans who are covered by a retirement plan; and
- a reformed and simplified Tax Code should include properly structured tax incentives to maintain and contribute to such plans and to strengthen retirement security for all Americans.
Neal’s auto IRA bill would amend the Internal Revenue Code to expand personal and retirement savings coverage by enabling employees not covered by qualifying retirement plans to save for retirement through automatic IRAs.