HOUSE COMMITTEE PRESERVES VITAL RETIREMENT SAVINGS INCENTIVE

Budget Reconciliation Measure Clears Hurdle

 WASHINGTON, D.C. – The House Committee on Ways and Means voted to advance major provisions of a tax and budget measure that preserves tax-deferred treatment of retirement savings, a vital incentive for workers enrolled in employer-provided retirement plans.

The Insured Retirement Institute (IRI), which has worked to educate members of Congress to keep the incentive, said the tax-deferred treatment of retirement savings has proven to be a valuable tool to encourage workers to save for retirement during their working years.

“We are grateful to Chairman Jason Smith and all the members of the Committee for preserving the current tax-deferred treatment of retirement savings, a powerful incentive that helps workers achieve greater financial security in retirement and contributes to America’s economic growth,” said Wayne Chopus, President and CEO at IRI. “Workers will save less if tax deferral is reduced or eliminated, and we will remain engaged on Capitol Hill to ensure that the Committee’s action to protect this vital provision remains in any final measure sent to the President.”

The Ways and Means Committee considered a measure to implement the directions it had received about tax law provisions from the House Committee on Budget to be included in a budget reconciliation bill, which can only address tax and spending matters within specific parameters.

A reconciliation bill that meets such criteria can pass the Senate by a simple majority vote. Most bills in the Senate are subject to a filibuster, a procedure where a senator can speak for an extended period to block a vote on a bill or other measure. Ending a filibuster requires a 60-vote supermajority.

The House reconciliation bill seeks to renew many tax provisions of the Tax Cuts and Jobs Act of 2017, plus other provisions advocated by the Trump Administration. Preserving tax deferral of retirement savings is a top IRI priority listed in the association’s 2025 Federal Retirement Security Blueprint.

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Contact: Dan Zielinski