FSI Urges Lawmakers to Preserve Retirement Plan Tax Incentives
If enacted, Senate Concurrent Resolution 62, authored by
"The incentives in the current tax structure play a key role in the decisions made by individuals and businesses on how much they save. If the benefits in the tax code were to be removed, many people may not have the proper incentives to save sufficiently for their retirement," FSI President and CEO
"In addition, if changes are made, employers may choose not to sponsor retirement plans. The consequences of these changes could result in Americans not accumulating sufficient financial resources to sustain themselves during retirement," Brown said.
FSI's entry into the debate comes amid ongoing negotiations between the
FSI advocates on behalf of policies that generally encourage greater employer and employee participation retirement plans, and warns that curbing tax incentives or capping maximum contribution limits could jeopardize the retirement security of millions of Americans, compelling "the government to intervene to help under-prepared retirees during their retirement years."
Brown also pointed out that the taxes on retirement plans are deferred — not avoided — and are paid upon distribution of the funds.
Retirement plans took a hit the last time
The FSI is not alone in championing the preservation of the current tax system for retirement plans. Late last month, the
"The single most important factor in determining if a worker is saving for retirement is whether or not there is a plan at work," ASPPA CEO and Executive Director
A companion to the
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