House Republicans’ bill would increase limits on retirement savings accounts

House Republicans on Wednesday introduced legislation that would lift the ceiling on retirement savings account contributions.
APR 23, 2009
By  Bloomberg
House Republicans on Wednesday introduced legislation that would lift the ceiling on retirement savings account contributions. The Savings Recovery Act, introduced by House Education and Labor Committee ranking minority member Howard McKeon, R-Calif., and other Republicans, would increase limits on individual retirement account and employer-sponsored plan contributions to $33,000 for three years. Currently, annual individual retirement account contribution limits are $5,000, and the annual employee contribution cap for employer-sponsored plans, such as 401(k)s, is $16,500. The bill would permanently increase IRA contribution limits to match the employee-contribution limit in employer-sponsored plans. The combined employer-employee contribution cap for employer-sponsored plans would be raised to $65,500 for three years under the bill, from $49,000. Existing SAVERs credits would be extended to Section 529 college savings accounts under the bill, which would cut in half the cost of a family’s contributions to the plan, according to a release from House Republicans. Social Security earnings limits would be doubled, to $28,320, under the legislation so that older Americans could earn more without losing Social Security benefits. The capital gains tax on assets invested over the next two years would be suspended. The amount of capital losses that could be deducted against income would increase to $10,000 and be indexed for inflation. Taxes on dividend income would be suspended through 2011. “This legislation will give families the freedom and flexibility to save more and rebuild their nest eggs,” Mr. McKeon said in a statement.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.