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House Votes to Make Retirement and Education Savings Enhancements Permanent
Washington, DC, April 23, 2002 - The House of Representatives recently passed H.R. 586, the “Tax Relief Guarantee Act of 2002,” which would make permanent the enhancements to retirement and education savings vehicles that were included last year in the Economic Growth and Tax Relief Reconciliation Act (EGTRRA).
In March, 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.
EGTRRA introduced a number of enhancements to long-term savings vehicles, including:
- increased annual contribution limits for IRAs and employer-sponsored retirement plans;
- “catch-up” contributions to IRAs and employer-sponsored plans for individuals age 50 and over;
- improved portability of assets between different types of retirement plans.
- created additional savings incentives for education savings vehicles such as Section 529 qualified tuition programs and Coverdell education savings accounts (formerly Education IRAs).