January 24, 1991
TO: PENSION COMMITTEE NO. 1-91
RE: BENTSEN PROPOSES UNIVERSAL "SUPER" IRA
__________________________________________________________
Senator Lloyd Bentsen circulated the attached letter to his
colleagues dated January 23, 1991 requesting Congressional
support for legislation to create a Super IRA. A fact sheet on
the Super IRA proposal also is attached.
The Super IRA would restore the universal IRA and also
create a second type of IRA. Contributions to the new IRA would
not be deductible, but all distributions from the new IRA would
be tax-free as long as assets remained in the account for at
least 5 years. The Super IRA would permit penalty free
withdrawals by the account owner, his parents or grandparents to
pay for first home purchases, educational expenses and
financially devastating medical expenses. Penalty free
withdrawals for such purposes would also be available under
401(k) plans and 403(b) arrangements.
A meeting was previously scheduled for February 5, 1991 at
2:00 p.m. to discuss the parameters for an Institute designed
legislative proposal to provide a simple retirement plan for
small employers. We will also discuss the Super IRA proposal at
this meeting and review the legislation if it has been introduced
by that date. Therefore, it would be expedient if you could
attend the meeting with a marketing representative from your
organization. Please call Wynetta Singhateh at 202/955-3525 if
you and anyone else from your firm will be able to attend the
meeting and luncheon at 1:00 p.m. The meeting will take place in
the Institute’s fifth floor conference room, but may be moved to
a larger location if necessary.
If you have any questions with regard to the meeting,
please call me. We will keep you informed of further
developments.
W. Richard Mason
Assistant General Counsel
Attachments