Jim Saxton: “I have spoken on a number of previous occasions on the need to expand IRA accounts. Today I would like to cite the need…”

“I have spoken on a number of previous occasions on the need to expand IRA accounts. Today I would like to cite the need for middle-class parents to save for college education as an important reason for further IRA expansion. Earlier this year, I introduced a bill to expand IRA income caps and deductions to permit penalty-free withdrawals for a number of purposes, including college education. And I am very pleased that the tax bill we passed last summer lifted some of the income caps to benefit more middle-income families. Although good progress has been made in the expansion of IRA eligibility for college expenses, much more is needed. The main problem is that IRA deduction ceilings remain, and have remained so for some decades, at $2,000. It is inadequate. The solution is to increase IRA deduction. My legislation would increase it $500 annually for 10 years, ending up with a $7,000 cap. Perhaps a more aggressive schedule could even be kept and it would be possible if current budget trends do result in a budget surplus.”