Robert L. Ehrlich, Jr. press release, July 19, 2000

MEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1 407 York Road, Suite 304 Lutherville, Maryland 21093 3 1 5 Cannon House Office Building Washington, D.C. 20515 FOR IMMEDIATE RELEASE: CONTACT: Jill Homan July 19, 2000 202/225-3061 Congressman Ehrlich Votes to Raise IRA, 401k Contribution Limits, Give Americans More Retirement Options WASHINGTON, D.C. -- Congressman Robert L. Ehrlich, Jr. today voted for legislation to help Americans to save more money for retirement in an IRA or 401(k) plan. The House of Representatives overwhelmingly passed H.R. 1102, the Comprehensive Retirement Security and Pension Reform Act, by a vote of 401-25. The bill now heads to the Senate. Congressman Ehrlich stated, “We have a real retirement savings problem in this country. Only half of all private sector workers have any kind of pension - and only 20% of small businesses offer retirement plans. Moreover, Congress has not raised the contribution limits on IRAs and pensions since the early 1980s. Last year, however, the President declined Congress’ attempt to raise these limits by vetoing tax relief legislation which included these retirement provisions. “With this legislation, we encourage retirement saving by raising IRA and 401(k) contribution limits and giving workers the opportunity to invest more of their hard-earned money in the retirement plan of their choice.” Key provisions in H.R. 1102 include: Individual Retirement Accounts (IRAs): The current-law $2,000 IRA contribution limit (established in 1981) for both traditional and Roth IRAs would be increased to $5,000 ($3,000 in 2001, $4,000 in 2002, and $5,000 in 2003), and indexed for inflation thereafter. Taxpayers age 50 and above would be permitted to contribute $5,000 to an IRA immediately beginning in 2001 (no phase-in would apply). These "catch-up" contributions would enable older taxpayers to more fully prepare for retirement. Increased Pension Contributions: The limit on salary reduction contributions to 401(k)-type