, Newburyport, MA


January 3, 2013

Administration wants your retirement plan to avert fiscal cliff


Another organization, the Insured Retirement Institute, echoed these concerns.

They announced (though the administration’s proposal) “does not explicitly call for changes in the tax status of annuities for all,” there are serious concerns “including the elimination of certain tax incentives for retirement savings and new limitations on deductions for retirement contributions.” IRI is urging policy makers “to protect incentives in place for Americans to attain financial security in retirement, particularly by maintaining the tax-deferred status of annuities for everyone.”

IRI’s “research has shown that the tax-deferred status of annuities has been pivotal in helping middle-income Americans utilize lifetime income strategies as part of their retirement savings plan,” said Cathy Weatherford, IRI’s president and CEO, in a statement. “Removing this incentive would not necessarily increase tax revenue, but certainly would add a new barrier that would prevent Americans from attaining lifetime income coverage. With today’s unprecedented retirement challenges, now more than ever, we need to protect the incentives available to help Americans attain a financially secure retirement.”

The references that Graff and Weatherford make stem from ongoing discussions that are now becoming more relevant with the looming crises and that also includes a well-stated goal of the administration’s budget plan to force employers to offer “mandated” retirement plans. This discussion has been going on for some time though.

In 2010 Sens. John Kerry, D-MA, and Jeff Bingaman, D-N.M., proposed ideas that have been circulating in discussions and public hearings at the Treasury and U.S. Labor Department since, which has been endorsed in the Obama administration’s 256-page Budget Proposal For Fiscal Year 2013. The centerpiece is an “Automatic IRA” in which employers are directed to allocate an amount that equals 3 percent of a participating employee’s salary into a social security-type retirement plan that invests in U.S. treasuries and in which the federal government guarantees a 3 percent return. Even though tax credits to businesses would be provided for this scheme, the concern is that this would add an additional cost burden on small businesses that would restrict job growth.

Text Only | Photo Reprints

NDN Video
'Hunger Games: Mockingjay Part 1' Sneak Peek GMA: Dog passes out from excitment to see owner Chapter Two: Designing for Naomi Watts Baseball Hall of Famers Inducted Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show' Robin Wright Can Dance! (WATCH) She's Back! See Paris Hilton's New Carl's Jr. Ad Big Weekend For Atlanta Braves In Cooperstown - @TheBuzzeronFox Chapter Two: Becoming a first-time director What's Got Jack Black Freaking Out at Comic-Con? Doctors Remove 232 Teeth From Teen's Mouth Bradley Cooper Explains His Voice in 'Guardians of the Galaxy' Deja vu: Another NYPD officer choke-holding a suspect 'Fifty Shades of Grey': Watch the Super Sexy First Trailer Now! Reports: Ravens RB Ray Rice Suspended For 1st 2 Games Of The Season Air Algerie plane with 119 on board missing over Mali Diamond Stone, Malik Newman, Josh Jackson and others showcase talent Free Arturo - The World's Saddest Polar Bear A Look Back at Batman On Film Through The Years
Special Features
NRA Waterfront Plans