“Congress has not increased contribution limits on IRAs and pensions in almost twenty years,” Jones said. “This bill would raise these limits and offer expanded opportunities and options for Americans to invest their hard-earned money into the retirement plan of their choice.”  

 Currently, only half of all private sector workers have any kind of pension and only 20% of small businesses offer retirement plans. H.R. 1102, the Comprehensive Retirement Security and Pension Reform Act would make it easier for employers, especially small businesseses, to establish and maintain retirement plans for their employees.  In addition, the bill would simplify the process for workers to roll over their retirement savings when they change jobs. 

Key provisions of H.R. 1102 include:

• IRAs:  The current $2,000 IRA contribution limit for traditional and Roth IRAs would be increase to $5,000 by 2003 -- ($3,000 in 2001, $4,000 in 2002, and $5,000 in 2003). Taxpayers over 50 would be permitted to contribute up to $5,000 immediately, to enable older taxpayers to more fully prepare for retirement.

• Increased Pension Contributions: The limit on salary reduction contributions to 401(k)-type plans would increase to $15,000 by 2005; and the limit on an employer’s deduction for contributions to certain types of defined contribution plans would be raised to 20% of compensation.

• Regulatory Relief to Encourage Small Business Pension Growth: Pension laws would be modernized and streamlined to encourage small businesses to offer pension plans.