ROTH Retirement Plan Legislation

  
Senate Finance Committee Chairman William Roth Jr. will propose legislation in two areas. First, he will propose under the "Personal Retirement Accounts Act of 1999" that taxpayers would receive Social Security benefit credits in two accounts, one would be the present day credit in an unspecified minimum amount, and the other account would be an additional amount with three investment choices: a stock index fund, a corporate bond fund, or a US Treasury bond fund. Second, he will propose legislation under the "Retirement Savings Opportunity Act of 1999" that IRA contribution limits be increased from $2,000 to $5,000 per year with inflation adjustments in $100 increments. He will also propose increases in the 401k and 403b limits from $10,000 to $15,000 and $10,000 for SIMPLE IRA plans. He would also eliminate the phase out ranges for all IRAs, and raise the AGI limit for converting a traditional IRA to a ROTH IRA from $100,000 to $1,000,000. Finally, he would give persons nearing retirement the chance to make extra contributions of up to an additional 50% of the annual limit( from $5,000 to $7,500)