December 8, 1994
TO: BOARD OF GOVERNORS No. 121-94
MEMBERS - ONE PER COMPLEX No. 92-94
RE: CONGRESS AND ADMINISTRATION CONSIDERING IRA EXPANSION
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The Republican "Contract," expected to be acted on in the first 100 days of the new Congress,
includes a provision to create a tax-advantaged savings account (described in attachment E). The
Administration also is reportedly considering middle class tax relief proposals which could include tax
incentives to encourage individual savings. Earlier this year more than half the Senate and almost half
the House of Representatives cosponsored legislation to restore the universal availability of a fully
deductible Individual Retirement Account.
All this suggests a real opportunity for enacting IRA expansion in early 1995. To support the
Institute's efforts to expand the IRA, we recommend that:
-- Your firm's executives write Members of Congress and the White House to urge support of
an expanded Individual Retirement Account;
-- Follow-up efforts be made to meet or speak on the phone with Members of Congress as
soon as possible; and
-- You contact your shareholders about this legislative opportunity and ask them to send
letters of support to Members of Congress and the White House.
While these letters should be written in your own words, attached are suggested points for
inclusion in a letter (attachment A). Also attached you will find: additional points to use with your
shareholders (attachment B); a list of policymakers to contact (attachment C); and an Op-Ed piece that
the Institute will distribute nationally (attachment D).
Please send a blind copy of your correspondence to Michael Stern of the Legislative Affairs
Department, and advise him of any response to your communication.
Should you require additional information, please contact the Legislative Affairs Department at
(202) 326-5890.
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For informational purposes only, a copy of this memo has been sent to your firm's
representatives on the following Institute Committees:
Federal Legislation Committee
Government Affairs IRA Issue Group
Pension Committee
Public Information Committee
Regional Working Groups
Shareholder Communications Committee
Tax Committee
No action was requested of them.
We very much appreciate your assistance in connection with our efforts to expand IRA
coverage.
Matthew P. Fink
President
Attachments