FOR IMMEDIATE RELEASE

DATE: March 17, 1999

         WASHINGTON, DC -- The Savings Coalition of America applauds Senate Finance Committee Chairman Bill Roth and Senator Max Baucus on the introduction of their legislation, which will significantly increase opportunities for Americans to save for their futures. The Roth-Baucus legislation would expand Individual Retirement Accounts (IRAs) by:

• Increasing contribution limits from $2,000 to $5,000 and indexing for cost-of-living adjustments;
• Eliminating income limits for the Roth and Traditional IRAs;
• Increasing the income limit for conversions to the Roth IRA to $1 million;
• Establishing catch-up provisions for Americans over age 50 that allow for contributions of 50% more than the contribution limit; and
• Allowing for IRA contributions in employer plans

         Personal savings is the third leg of the retirement stool in addition to employer- provided plans and Social Security. By expanding income and contribution limits and creating incentives for small business this bill takes a big step in the direction of retirement security. "This legislation provides incentives for all Americans to prepare for their retirements," said Kathy Hamor, Executive Director of the Savings Coalition of America. "It incorporates self-reliance as an important component of retirement security."

         The expanded IRA provisions included in this proposal provide opportunities for Americans to save by making the deductible and Roth IRAs available to all Americans by removing income limits. There has not been an increase in the amount individuals can contribute to an IRA since 1981. "With this legislation, if the $2,000 contribution were indexed for inflation, Americans would be able to contribute nearly $5,000; the amount that Senators Roth and Baucus have recommended in this bill," Ms. Hamor said. The Savings Coalition applauds the catch-up provisions that are included in this bill as they provide a solution to real-life situations where many Americans were unable to save earlier in life.

         The Savings Coalition of America has more than 75 member organizations representing tens of millions of American savers. Its membership includes representatives from a wide variety of interests including consumer, health care, education and business groups, engineers, home-builders, realtors, trust companies, banks, insurance and securities firms and financial services companies. The Savings Coalition of America was established in 1991 to encourage the passage of expanded IRA legislation.

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For additional information contact: Kathy Hamor at the Savings Coalition of America

(202) 682-4736