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Impending Tax Reform and the Save My 401(k) Movement

You are probably aware that tax reform has been a hot topic for some time now and there are a number of proposals being made by both Republicans and Democrats that could impact not only the retirement plan industry but everyone who is saving or will be saving for their retirement through 401(k) and other retirement plans.

One example of some of the most aggressive proposals is one that would reduce the 415 Annual Additions Limit ( the maximum contributions that a participant can receive in a 401(k) plan for a plan year) from $50,000.00 in 2012 to the lesser of 20% of compensation or $20,000.00.

This proposal if put into law, could have employers second guess whether or not establishing or even continuing to maintain a 401(k) plan is worth the cost of administration and the liabilities that comes with being a plan sponsor or co-sponsor.

ASPPA (American Society of Pension Professionals and Actuaries) is working diligently to convince Congress to avoid major changes to the 401(k) regulations and now has a web site in place which will provide information as to how all of us can become involved with the challenges ahead, including a generic letter that can be sent directly to your Congressman or Congresswoman.


The web site is:


We urge you, and your family and friends to visit the site and to send your letter to your Congressman or Congresswoman.

We need to make our voices be heard, and we believe that through the efforts of ASPPA and other retirement plan organizations as well as with a grass roots movement, Congress will take our concerns seriously and will act accordingly.


↓ You will find additional information on this matter below.


Thank you for your time.

John Wolfe, QKA
Compliance Department Supervisor



ASPPA Gears Up to Protect 401(k)s from Tax Reform

By Steve Sullivan

Leading with a bullhorn and a battle cry, ASPPA’s Executive Director and CEO Brian Graff called on attendees at the 2012 ASPPA Annual Meeting Oct. 28 to marshal their resources and get ready for what lies ahead — namely tax reform — and don’t allow history to repeat itself.

“I want to take you back 26 years ago, to 1986,” said Graff. “Ronald Reagan was in office. And just like today, the federal government was in dire need of tax reform in order to raise revenue.

“Many of you remember those days; and if you were working in this business back then, you certainly remember those days. 401(k) plans got whacked by 70 percent. Businesses terminated plans. ASPPA members lost their jobs and businesses. And unfortunately, our industry — and especially ASPPA — just wasn’t prepared. But it didn’t have to be that way.”

Toward that end, Graff announced the launch of ASPPA’s “SaveMy401k – Protect My Piggy!” campaign. Its goal is to send 250,000 emails to members of congress that say, “Stay away from my 401(k)!”

“Campaigns of this scope usually cost millions of dollars. We don’t have that,” said Graff. “What we do have is a strong, passionate membership. You guys — each one of you — has a network that touches providers, sponsors, and participants. Together, your networks reach millions of Americans. Our plan is to use social media to energize our membership base, and then reach out to the masses. This is an emotional issue. Social media works best when emotion is involved.”

The campaign will feature a website set to launch the week after the election featuring:
• an online information kit that tells ASPPA members everything they need to know about how to get involved in the campaign;
• an automated way to send an email to members of Congress;
• information that shows why 401(k) plans are so successful in helping America — and especially middle America — save for a secure retirement; and
• an animated video and a video game.

Look for more information in the NAPA Net Daily when the site launches around Nov. 12.

“The strategy is to mobilize ASPPA members now and have everyone ready to reach out to their networks before Congress reconvenes in January,” Graff said. “We want Congress to feel our heat before they get immersed in tax reform. We need to educate them about why they should not mess with the 401(k) when seeking new sources of revenue.”

*Steve Sullivan is the editor of 403(b) Advisor magazine.