Securities Industry Association Release on IRA Contribution Increase

September 28, 1999

[1] On behalf of the Securities Industry Association (SIA), we are writing in support of H.R. 802, legislation that you sponsored to increase the $2,000 Individual Retirement Account (IRA) contribution limit to $5,000.

[2] H.R. 802 recognizes that an increase in the IRA limit is long overdue. As you know, the current IRA contribution limit has not even kept pace with inflation. Saving $2,000 per year will not be adequate to fund retirement, particularly for the millions of workers who do not have retirement plan coverage at work. The need for increased retirement savings is all the more imperative with the rapid inflation in medical costs and the long-range financial problems of the Social Security program. SIA strongly believes that increasing the IRA contribution limit for all workers is essential if workers are to have enough savings to live comfortably in retirement.

[3] Thank you for your strong efforts in the area of retirement security. SIA welcomes the opportunity to work with you to enhance opportunities for savings, investment, and economic growth.

Sincerely,