Bill Would Double IRA Contribution Limit for Those Without Retirement Plan Access

Senator John Kennedy (R-LA) has introduced the Increasing Retirement Amount Act to allow individuals without access to a workplace retirement plan to save more for retirement by providing an increased IRA contribution limit of $12,000 per year, subject to annual cost of living adjustments. The special rule would also allow catch-up contributions of up to $3,000 per year for those age 50 or older.

Eligible individuals include workers whose employer did not maintain a retirement plan during the applicable tax year. The current IRA contribution limit is $6,000, or $7,000 for individuals age 50 or older, regardless of taxpayer access to other retirement savings.