Expansion of Individual Retirement Accounts (IRAs), Education Savings Accounts (ESAs), and Individual Development Accounts (IDAs).
ABA supports significant increases in the dollar limits for permissible annual contributions to the various individual account programs as well as expanded opportunities for banks to provide services in the IRA business.
IRA contribution limits have been increasing over the years, including the most recent increases put in place by the Pension Protection Act of 2006, an action long supported by ABA. We support proposals that will further increase the dollar limits for permissible annual contributions to IRAs and ESAs. IRAs allow individuals to establish and control their retirement plans and are important investment vehicles, particularly for individuals who do not have employer-sponsored pension plans. ESAs provide savers an important tool for financing education.
Members of Congress continue to look at further proposals to expand the uses of IRAs, and to increase the number of people participating in IRAs. Currently Congress is looking at automatic enrollment IRAs, which have certain administrative difficulties that still need to be resolved, but may be a means for increasing participation.