Gallegly Pushes for Hike in IRA Limits
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A proposal by Rep. Elton Gallegly to increase the annual contribution limits on individual retirement accounts to $5,000 from $2,000 was included as part of a retirement security bill that Congress is expected to consider this month.
“Increasing IRA contribution levels is a matter of simple fairness,” the Simi Valley Republican said in a written release. “The wealthy often have access to Keogh accounts and stock options. It’s the average American--the men and women in our country who work for paychecks--who depend on their IRAs to supplement Social Security and pensions.”
The retirement bill survived the House Ways and Means Committee and could reach the floor of the House as early as next week.
Gallegly said IRA contribution limits were last raised in 1981 under then-President Ronald Reagan.
“Had the IRA contribution limit been indexed to inflation when they were first introduced in 1974, the contribution limit would already be more than $5,000,” he said.
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