News Notes: Proposed Raise In Limits For Retirement Accounts Moves Forward

The full Senate will soon consider a bill that would raise contribution limits for individual retirement accounts and 401(k) plans. The maximum annual contribution for 401(k) plans would increase from $10,500 to $15,000. IRA limits would rise from $2,000 per year to $5,000, and “catch-up” provisions would allow workers aged 50 and older to put in more. The bill would also give a tax credit to smaller employers who start new retirement plans, and reduce the vesting time for employer matching contributions. We’ll keep you posted.