Tax Reform and the 401(k)John VDecember 18, 2012
If you’re reading this blog, it’s likely you’re already saving for your retirement. If that’s the case, congratulations! You should be very proud. You’re one of approximately 60 million Americans who are participating in a workplace 401(k) program. It’s a wonderful way to be help be prepared for a secure retirement.
According to data from the Employee Benefit Research Institute, more than 70% of workers earning from $30,000 to $50,000 participate in their employer 401(k) plans, compared with only 5% who save for retirement without a plan at work. 401(k) plans work and continue to be the chief savings vehicles for American workers in both big and small businesses!
But did you know Congress has begun working on tax reform – and the outcome could affect your 401(k) plan? The last time Congress passed tax reform in 1986 it cut the 401(k) contribution limit by 70% resulting in a mass termination of plans. And guess what? Proposals are already being considered by lawmakers today to cut the 401(k) contribution limit again. If that happens, the retirement security for millions of Americans will be jeopardized and the results would be disastrous.
I encourage you to visit www.savemy401k.com to learn more. On this website, you’ll be able to send an automated message to your members of Congress. It’s easy to do and takes only seconds to help protect your 401(k).