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.
