IRA Rollover

The provisions fall into the following three themes: 1) Traditional savings accounts; 2) iras and their contribution limits; 3) Addressing minimum distributions from retirement accounts for seniors. Specifically, the legislation would do the following: – Exclude up to 0 (twice that amount for married couples) of interest income from gross income annually. – Permanently increase the IRA contribution limit from 00 per year to 500 (the current employer-sponsored plan limit). – Temporarily double the contribution limit to employee-iras and employer-sponsored plans from 500 to 000. – Temporarily increase the catch-up contribution cap for employee-iras and employer-sponsored plans to 000. – Temporarily suspend requirements for minimum distributions from tax-deferred retirement plans. This provision mirrors legislation Rehberg introduced last Congress that permitted seniors to forgo their required minimum distribution from their iras, 401k accounts, or annuities. Currently if a senior does not take their required minimum disbursement (RMD) after age 70 ½, they are heavily penalized. Although Congress has temporarily suspended rmds for the year 2009; this bill would extend that suspension through 2012 to allow further time for the market to stabilize.