"This bill promotes important values," said Smith. "People should take responsibility to save for retirement, and government should cut taxes to make it easier to do so." 

Specifically, the passage of this bill will allow for increases in the amount individuals may contribute to their IRAs from the current $2,000 to $ 5,000 a year, and 401(k) limits from $10,500 to $15,000. It also makes it easier for employees to "roll over" their pension plans when they change jobs. It will also shorten the vesting period for company pensions, and it will make various other changes intended to increase participation in retirement savings plans. 

Smith also supported a provision that would allow small employers to claim a tax credit for establishing a retirement plan and certain employer contributions made on behalf of non-highly compensated workers. The provision also establishes a refundable retirement security account (RSA) tax credit for low- and middle-income workers. Unfortunately, these sections were rejected on a near party line vote.

Smith, along with the 313 other bi-partisan co-sponsors, hope this legislation will be included in the final tax package that will be sent to the President, although it was not included in President Bush's original tax cut proposal.

"The majority of people I represent favor responsible tax reduction, and one of my top priorities is to encourage families to save for retirement," said Smith. "This is a common sense proposal, and I hope it becomes law this year."