For Immediate Release
Washington, DC – The following statement should be attributed to Annette Guarisco Fildes, President and CEO, The ERISA Industry Committee (ERIC):
“The ERISA Industry Committee (ERIC) is pleased the Republican’s House tax reform plan does not decrease the pre-tax contribution limit for retirement plans that an individual may contribute on an annual basis.
ERIC believes tax reform should not inhibit hardworking Americans from saving for their retirement. 401(k) plans encourage savings and tax deferral is one of the primary reasons individuals contribute to their retirement plans. ‘Rothification’ would not have increased participation in retirement accounts; in fact, it would have decreased the incentive to save, which would have devastating effects on retirement security, upsetting decades of effort by employers and employees to enhance retirement security and improve financial wellbeing. We will continue to advocate against any decrease in the incentive to save for retirement on a pre-tax basis.
While ERIC is pleased contribution limits were not decreased, we were disappointed, however, that House Republicans have proposed to eliminate the provision that allows employers to provide tuition assistance to employees without the employee being taxed on the amount. A key deterrent to retirement security is mounting student loan debt that is hindering employees from saving for retirement. ERIC looks forward to working with Congress on ways to assist employees in advancing education and paying off student loans, while still preparing for retirement.”