The federal government has long acknowledged the critical role personal savings plays in retirement security, and in recent years have expressed interest in finding new ways to encourage Americans to increase their savings. According to this article from InvestmentNews, some new ideas under consideration may be telling us, in effect, “on second thought, don’t bother.”
A draft document from the National Commission on Fiscal Responsibility includes a “zero plan” which would eliminate the tax breaks for company sponsored retirement plans, health care programs, and the tax-deferred buildup of cash value in life insurance policies and annuities.
Brian Graff, executive director and CEO of the American Society of Pension Professionals and Actuaries notes that the proposal would “decimate the savings rate by eliminating tax incentives for contributing to employer sponsored plans…which ultimately hits low and moderate income workers hardest.”
The final version of this document will be released on December 1. If the “zero plan” stays in, we can only hope something of equal import as our nation’s financial security comes up that can distract Congress long enough such that the zero plan dies on the vine. As long as there is a professional athlete out there taking illegal steroids, I think we’ve got a good shot