While politicians of every stripe argue about the federal budget surplus and what to do with it (money that you overpaid in taxes to the government), most agree that individual contribution limits for both regular and Roth Individual Retirement Accounts (IRA) should be raised from $2,000 to $5,000. To that end, the Majority Leadership in the U.S. House of Representatives plans to hold a free-standing vote on a measure to raise the IRA contribution limit to $5,000 in the next two months. No vote should be easier or more popular for Members of Congress from both political parties.

The IRA contribution limit increase is long overdue. The last increase occurred in 1981, almost twenty years ago. If the limits were indexed for inflation (like Social Security and the standard income tax deduction for example), starting with the introduction of the IRA in 1974, the limit would now exceed $5,000. It’s only fair that today’s workers have an opportunity to adequately provide for their retirement. To do that, to literally save their future, the limit must be raised.

Some estimates indicate that more than 50 million American workers are not covered by any employment-based retirement plan. One survey conducted by Lake Research reports that 70% of the "Baby Boomers" surveyed said they would save more if IRA contribution limits were raised. A recent poll commissioned by the Consumer Federation of America and DirectAdvice.com reveals that more than half of American households (56%) are behind where they should be in saving for a comfortable retirement. This study also finds a larger majority (59%) who expect their standard of living in old age will be "lower" than it is now. A 1998 Employee Benefit Retirement Institute survey found that 80% of us do not believe that Americans save adequately for retirement. The contribution limit increase must be enacted now, not tomorrow, to have an effect on retirement security.

It has long been clear that you can’t count on Social Security. The number of workers supporting Social Security recipients continues to shrink. From 4 workers to each recipient in 1965, the ratio will slide to 1.7 workers for each recipient in 2040. As the tax burden grows on the workers who support the system, the pressure will build to hold down Social Security payments. Employer-sponsored pension plans can help, but without adequate IRA savings to supplement their income, tens of millions of American retirees will be facing a bleak future.

That’s why legislators from both parties have been working to raise the limit. The list includes House Speaker Dennis Hastert, Senators Bill Roth and Max Baucus, and Representatives William Thomas, Rob Portman, Ben Cardin, Elton Gallegly and Dennis Moore. This strong, bipartisan support is there because the need is real and the solution is obvious. Higher limits would raise individual savings and boost our economy through lower interest rates. Workers and retirees would gain, and our future and your retirement can be saved. Of the many good ways that the overpayment of tax revenue could be returned, few make more sense than this one. The House should pass an increase to $5,000 for all IRA contributions, the Senate and the President should add their support, and this critical legislation should be enacted into law.

Al Cors, Jr. is Vice President for Government Affairs of the National Taxpayers Union, America’s largest taxpayer organization.