Making changes to retirement accounts that give people more flexibility can alleviate the burdens and stress faced during this economic downturn. The committee that oversees retirement policy has been working to find ways to strengthen and protect the savings of Americans.

Amendments to the Pension Protection Act were introduced October 2 that include a suspension of penalties on seniors over 70 who did not take a minimum withdrawal from their IRA this year if they have saved less than $200,000. A letter was also sent to U.S. Treasury Secretary Paulson on October 10 calling for these same fines to be waived. Proposals for a temporary freeze on penalties for early withdrawals from 401(k) plans made this year and in 2009 have also been suggested, but legislation has not been introduced.

These issues will likely be addressed when the 111th Congress convenes in January 2009. We need actions that will stimulate investment, job creation and economic activity in the sagging U.S. economy.