House Minority Leader John Boehner (R-Ohio) last week unveiled a plan to prop up the nation's struggling defined benefit and defined contribution retirement plan systems, and offer help to Americans in boosting retirement savings.
The 411 on the plan:
* Doubles the allowable smoothing of DB assets (from 10% to 20%) for two years.
* Raises catch-up contribution limints for 401(k)s and IRAs.
* Extends the suspension of minimum required distributions (currently through 2009) through 2012.
* Requires interest payments only for two years on 2008 DB plan losses and extends amortization of those losses from seven to nine years.
* Doubles the amount of income older workers may earn -- from $14,160 to $28,320 -- before having Social Security benefits reduced.
What do you think? Both the DC and DB systems have been on bleeding since last fall (and for DB plans, even before that). Will this plan help bandage up some of the wounds? Comment and let me know.
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