Author Topic: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits  (Read 1061 times)

much ado

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Thoughts on if/when this may pass?
https://www.congress.gov/bill/117th-congress/house-bill/8579?r=2&s=1
https://schweikert.house.gov/2022/08/01/schweikert-donalds-introduce-bill-to-fight-inflation-and-increase-savings-alternatives-for-americans/

It would, for 2023 only, increase the 401k, 403b, 457, and IRA limits by $4000 each (they're already going to increase by quite a bit anyway, due to inflation).
"Raise the yearly contribution limit for Roth and Traditional IRAs to $10,000
Raise the workplace retirement yearly contribution limit to $24,500"

Would also increase the Saver's Tax credit.

Whatever extra cash I have at the end of the year, trying to decide if I should put it in I-bonds, or hold onto it in case this passes to help me max out all accounts to the higher level (probably don't have enough money to do both).

secondcor521

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Re: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits
« Reply #1 on: September 03, 2022, 05:17:35 PM »
Most bills are referred to and die in committee.

My understanding is that if a bill is introduced in one session of Congress but not passed during that Congress, it would need to be re-introduced in a subsequent Congress.  Since we'll have a new Congress in January, that doesn't leave much time for this bill to be acted on.

So overall chances are not good from what I can tell.

(And that's leaving aside any opinion on whether the bill itself is any good.)

lifeisshort123

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Re: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits
« Reply #2 on: September 03, 2022, 07:13:43 PM »
If they increased the maximum, I would contribute more...

I understand they are looking at Secure 2.0, which would increase the maximum, but only for workers ages 50+.  I doubt this bill actually happens.

Honestly, I think you should be allowed to defer up to a much higher number.  maybe 35k, maybe 50k.  I would gladly contribute whatever I can to my 401k/403b/etc.

Morning Glory

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Re: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits
« Reply #3 on: September 03, 2022, 07:36:03 PM »
I fail to see how this would make a dent in inflation like they claim. The percent of the population who are already maxing out workplace plans and would contribute more if they were allowed to has got to be tiny.

zolotiyeruki

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Re: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits
« Reply #4 on: September 04, 2022, 02:43:14 PM »
I fail to see how this would make a dent in inflation like they claim. The percent of the population who are already maxing out workplace plans and would contribute more if they were allowed to has got to be tiny.
Keep in mind that one of the biggest ways some are proposing to fix Social Security is by removing the cap on SS taxes.  There are enough people in that higher income arena that they add up a fair bit, and I imagine those same folks would likely be the ones to increase their 401k contributions, given the opportunity.

lifeisshort123

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Re: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits
« Reply #5 on: September 04, 2022, 03:19:36 PM »
I support lifting the cap on SS taxes, assuming benefits will increase as well.

MustacheAndaHalf

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Re: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits
« Reply #6 on: September 06, 2022, 07:35:00 AM »
I support lifting the cap on SS taxes, assuming benefits will increase as well.
When I did calculations long ago, I recall the top tax bracket (for social security) only returned a small fraction (1/7th?) of the benefits during retirement.

zolotiyeruki

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Re: HR 8579 bill - Retirement Protection Act - increase 401k, IRA limits
« Reply #7 on: September 06, 2022, 08:11:32 AM »
I support lifting the cap on SS taxes, assuming benefits will increase as well.
When I did calculations long ago, I recall the top tax bracket (for social security) only returned a small fraction (1/7th?) of the benefits during retirement.
That's the whole point of lifting the cap--because people in those upper brackets will be paying into the system far more than they will receive in benefits, such a measure would substantially stabilize SS's finances.  Make no mistake--it's a straight-up tax hike on the high-income.