Free Republic

Social Security’s latest report on the status of the trust funds on which it relies to pay benefits has both good and bad news. The good news is that the funds have not been as hard hit by the Covid-19 as was initially feared, due the economic recovery that has taken place. The bad news is that the funds’ depletion dates have moved up sooner, prompting a chorus of calls for Congress to act swiftly to correct the problem. “If this report does not trigger a pretty serious and swift discussion on Capitol Hill among lawmakers about what needs to...

Congress is making another push on legislation that could make it easier for small companies to offer 401(k) plans and for workers to guarantee themselves an annual income after they retire. A bipartisan group of lawmakers including Rep. Richard Neal (D., Mass.), chairman of the House Ways and Means Committee, announced Friday the legislation would repeal the age cap for contributing to individual retirement accounts, currently 70½. It would also increase the age at which owners of tax-deferred retirement accounts are required to start taking withdrawals from those accounts to 72 from 70½. Because the measure has support from key...

President Barack Obama plans to ask Congress in early March, as part of his fiscal 2015 budget, to reduce some of the tax advantages for employer-sponsored retirement plans for higher-income earners, according to published reports. Plus, the president wants to limit the value of all tax deductions, defined contribution exclusions and IRA deductions to 28% of income — and include an overall cap on all retirement accounts, including pensions, that could bring in $1 billion a year in new tax revenue, according to a Pensions & Investments report. Read Companies bracing for 1-2 retirement punch . According to the report,...