Savings Coalition Says Final Budget Should Include Congressional IRA Proposal.

Kathy Hamor of the Savings Coalition of America, Washington, has asked Treasury to support the inclusion of the individual retirement account provisions of H.R. 2491 in the final budget agreement between the administration and Congress. Hamor contends that the IRA provisions in H.R. 2491 are more beneficial to all Americans because women saving for retirement receive equitable treatment under the rules and because the legislation does impose an income cap on the American Dream IRA.

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January 16, 1996

The Honorable Robert Rubin

Dear Secretary Rubin:

[1] The Savings Coalition of America is pleased by the inclusion of Individual Retirement Account (IRA) provisions in the tax cut portion of President Clinton's balanced budget proposal.

[2] We are enclosing a copy of a recent Boston Herald article that highlights provisions contained in IRA legislation that provide equitable treatment to women with regard to saving for retirement. The Savings Coalition would like to bring to your attention that these provisions are only included in the Congressional version of the IRA legislation, HR 2491, Seven-Year Balanced Budget Reconciliation Act of 1995. Another beneficial feature of this version of the IRA is that the American Dream IRA, which allows for an after-tax contribution, does not have an income cap and therefore provides all Americans with an incentive to save for retirement. We urge you to support inclusion of these important provisions as part of any final budget agreement between the Administration and Congress.

[3] The cost of the IRA initiative contained in the President's balanced budget proposal and HR 2491 are very similar. However, the provisions included in HR 2491 are more beneficial to all Americans. The members of the Savings Coalition of America urge you to support the IRA provisions which provide all Americans with an opportunity to save for their retirements.

Sincerely,

Kathy Hamor