Legislative Report
Obama Budget Proposals Include Enhanced Saver’s Credit, Auto IRA
The Obama Administration is proposing changes in the Saver's Credit and provisions to require employers to offer an automatic IRA. Both are contained in the Administration's proposed 2010 budget.
The Saver's Credit changes are aimed at expanding the number of moderate and lower income individuals who use the program to boost their retirement savings. As the program now operates, individuals within certain income limits get a tax credit based on the voluntary contribution they make to a qualified retirement plans such as 401(k) and 457 plans or an IRA. The credit rate varies according to the taxpayer's adjusted gross income.
Currently, the Saver's Credit is "nonrefundable," meaning it only offsets a taxpayer's income tax liability -- to get the credit, an individual must pay income taxes. Making the credit "refundable" would in effect turn it into a matching contribution that would be automatically deposited into a qualified retirement plan account or IRA to which the individual had contributed. The individual would not have to pay income taxes in order to receive the credit.
Browse articles and resources on current issues facing public sector plan sponsors and participants.
The Washington Perspective is a periodic online newsletter highlighting legislative and regulatory proposals affecting public sector retirement plans.
- Retirement Plan Limits Remain the Same for 2010
The Internal Revenue Service and the Department of Treasury announced last week that they are preventing reductions in the amounts that workers can contribute to 401(k)s, 457 plans, IRAs and other tax-favored retirement systems in 2010. - IRS Launches New Retirement Plans Web site For Employers
The Internal Revenue Service recently launched a new Web site designed to help employers determine the best retirement plan to suite their employees’ needs. - Congress Passes National Save For Retirement Week Resolution
A resolution recognizing National Save for Retirement Week (NSRW) has passed in both the House and Senate. Rep. Allyson Schwartz (D-PA) and Rp. Sam Johnson (R-TX) co-sponsored H Res. 647 which designates Oct. 18-24, 2009 as a week set aside for "raising public aware of the various tax-preferred retirement vehicles."
About Legislative Report
Welcome! We invite you to explore the pages of the Legislative Report, ICMA-RC’s portal to the latest news and information about the policies and issues that play a part in building retirement security.
Our Public Affairs office works with Congress, key executive branch officials, and public sector groups to protect and build the retirement security of participants we serve. We bring our expertise in public sector retirement plans to policy makers during debates on retirement plans (401(a) and 457) and retirement health savings initiatives.
Timely legislative updates will appear in our Featured Item section on the Legislative Report home page. For information related to existing regulations that govern your plan, please refer to the new Plan Rules section of the web site. Visit the Legislative Report often for updates on pending legislative and regulatory issues and notices on emerging policy initiatives.