As Congress continues to work to balance the federal budget and eliminate the deficit, a variety of ideas and proposals have been put on the table. Some leaders in Washington have proposed eliminating tax incentives for individual retirement savings, such as in 401k’s, IRAs and other private retirement plans.
The New England Council’s Financial Services Committee, along with other regional leaders in the financial services industry, are concerned about the potentially devastating long term consequences of such a measure. Several months ago, the Council wrote to members of the New England Congressional delegation to express its concerns and outline the long-term benefits of encouraging Americans to save for retirement by deferring taxation on retirement savings until the funds are withdrawn years later.
Congressman Richard Neal (D-MA) and Congressman Jim Gerlach (R-PA), members of the influential House Ways & Means Committee, introduced a draft concurrent resolution expressing the sense of the Congress that our current tax incentives for retirement savings provide important benefits to Americans to help plan for a financially secure retirement. The Council has again written to members of the New England delegation, urging them to support this resolution when it comes to the House floor. Click here to view the letter.
You can learn more about the Council’s work on retirement savings and other financial issues in the Financial Services section of our website.