October 27, 2009 – Rep. Michael Burgess (R-Texas) introduced a bill (H.R. 3920) to extend the 2009 waiver of required minimum distributions (RMDs) through 2010. The bill has been referred to the House Ways and Means Committee, but has not yet been heard by that committee.
Rep. Dennis Rehberg (R-MT) has introduced H.R. 3903, the Securing Tomorrow by Saving Today Act of 2009, to temporarily increase IRA contributions, retirement plan deferral limits, and catch-up contributions through 2011, and to extend the RMD waiver through 2012.
Regarding increasing contributions, H.R. 3903 would allow IRA contributors and retirement plan participants in deferral-type plans to increase their annual contributions and catch-up contributions for 2009, 2010, and 2011. Rep. Rehberg’s bill would increase the IRC Sec. 402(g)(1) deferral limit to $33,000 for 2009, with potential cost-of-living adjustments (COLAs) for 2010 and 2011. This contribution limit would be made available not only to those who participate in such deferral-type plans as 401(k) and 403(b) plans, but also to IRA holders and to participants in SIMPLE plans. Catch-up contributions for those eligible would be $10,000 for 2009, with potential COLA adjusted increases for 2010 and 2011, for all these savings arrangements. In addition, the IRC Sec. 415(c) annual additions limit for defined contribution plans would be increased to $65,500 for 2009, with potential COLA adjusted increases for 2010 and 2011.
This bill, too, has been referred to the House Ways and Means Committee, but has not yet been heard by that committee.
It should be remembered that the majority of bills introduced in Congress do not become law. Furthermore, Congress is currently occupied with numerous appropriations bills, and very complex and contentious health care reform legislation. However, popular provisions of what might otherwise be considered minor legislation are sometimes amended onto other bills. Watch this Ascensus Latest News for further updates.