Rodney Frelinghuysen: “I rise in support of H.R. 1102, the Comprehensive Retirement Security and Pension Reform Act. This bill contains a…”

“I rise in support of H.R. 1102, the Comprehensive Retirement Security and Pension Reform Act. This bill contains a number of common-sense provisions to make it easier for Americans to build a stronger financial future for themselves. First and foremost, the bill increases the amount of money an individual can contribute to an Individual Retirement Account (IRA). The current $2,000 a year level, which has remained unchanged since 1981, would be increased to $5,000. An estimated 35 million Americans have some sort of IRA account, and nearly 70 percent of them contribute the maximum amount each year. Passage of H.R. 1102 will allow these individuals to set aside an even greater amount of money to prepare for their future retirement security. Second, the bill allows workers to become vested in less time--three years instead of five--and makes 401(k)-type plans more portable. As we know, workers no longer spend their entire careers with the same company. Instead, workers increasingly change jobs several times over the course of their careers. Under the provisions of H.R. 1102, these workers will be able to bring their accumulated retirement savings with them when they switch jobs. Lastly, this bill also allows older men and women, aged 50 and up, to make a $5,000 "catch up" contribution to their IRAs and increases the limit on salary reduction contributions to 401(k)-type plans to $15,000.”