House Republicans' bill would increase limits on retirement savings accounts

According to Investment News, House Republicans on Wednesday introduced legislation that would lift the ceiling on retirement savings account contributions.

The Savings Recovery Act, introduced by House Education and Labor Committee ranking minority member Howard McKeon, R-Calif., and other Republicans, would increase limits on individual retirement account and employer-sponsored plan contributions to $33,000 for three years.

Currently, annual individual retirement account contribution limits are $5,000, and the annual employee contribution cap for employer-sponsored plans, such as 401(k)s, is $16,500. The bill would permanently increase IRA contribution limits to match the employee-contribution limit in employer-sponsored plans.