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House-Passed Legislation Makes IRA, Retirement Savings Enhancements Permanent
Washington, DC, June 24, 2002 - The House of Representatives recently voted to make permanent the pension and IRA provisions included in last year’s Economic Growth and Tax Relief Reconciliation Act (EGTRRA) by passing H.R. 4931, the “Retirement Savings Security Act of 2002.”
A substitute amendment to H.R. 4931, which would have repealed EGTRRA’s sunset provisions, but also would have imposed limitations on other of EGTRRA’s provisions, was defeated in the House.
Among the enhancements made to IRAs by EGTRRA are:
- increased annual contribution limits;
- “catch-up” contributions for individuals age 50 and over; and
- improved portability of assets between different types of retirement plans.
Earlier this year, the Institute submitted testimony to a House committee urging Congress to eliminate EGTRRA’s sunset provision, which would make the savings incentives void after December 31, 2010. In April, the House passed the Tax Relief Guarantee Act of 2002, legislation that made EGTRRA’s retirement and education savings provisions permanent.