A recent article from Plansponsor outlined a new proposal from U.S. House Ways and Means Committee Chairman Dave Camp that would have an interesting impact on current U.S. retirement system. In his proposal,
- Contribution limits would be frozen for the next 10 years, halting the current practice of adjustments for inflation
- Require all elective deferrals greater than 50% of contribution limits be made as Roth deferrals
- All Plans with more than 100 employees would be required to offer a Roth savings option
- 25% cap on the rate deductions and exclusions reduce taxpayer income tax liability, including exclusions relating to retirement savings
How would these proposed changes affect your Plan?