A new millennium for retirement plans: The 2001 Tax Act and employer flexibility

For the first time since the inception of tax-favored retirement plans, with the enactment of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), Congress has actually changed the law to provide employers with more flexibility in designing and funding those plans. Yet the 4% of the reven...

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Bibliographic Details
Published inBenefits quarterly Vol. 18; no. 1; p. 16
Main Author Martha Priddy Patterson
Format Journal Article
LanguageEnglish
Published Brookfield International Society of Certified Employee Benefit Specialists 01.01.2002
Subjects
Age
Compensation
Defined benefit plans
Economic growth
Economic Growth & Tax Relief Reconciliation Act 2001-US
Employees
Employers
Flexibility
Funding
Individual retirement accounts
IRA
Legislation
Low income groups
Reconciliation
Relief provisions
Retirement benefits
Retirement income
Retirement plans
United States > US
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Summary:For the first time since the inception of tax-favored retirement plans, with the enactment of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), Congress has actually changed the law to provide employers with more flexibility in designing and funding those plans. Yet the 4% of the revenue lost by EGTRRA's changes in retirement savings plans has the potential to change the financial security of individuals, and consequently the financial security of the nation, far more than any of its other provisions, including the rate cuts. The new law contains many specific changes encouraging and emphasizing the need for retirement saving. The new law recognizes the effects of a mobile workforce on retirement saving and attempts to address some of the portability issues through faster vesting for certain contributions and through more opportunities to roll over balances from different types of plans to new employer plans.
ISSN:8756-1263
2168-3336