January 31, 1995
TO: BOARD OF GOVERNORS No. 17-95
FEDERAL LEGISLATION COMMITTEE No. 5-95
FEDERAL LEGISLATION MEMBERS No. 5-95
MEMBERS - ONE PER COMPLEX No. 11-95
GOVERNMENT AFFAIRS IRA ISSUES GROUP
RE: INSTITUTE TESTIFIES ON IRA EXPANSION LEGISLATION
______________________________________________________________________________
On January 31, 1995, John J. Brennan, President of the Vanguard Group, testified on
behalf of the Institute before the House Ways and Means Committee on proposals to expand
tax incentives for savings. These proposals include the American Dream Savings Account in
the Republican Contract, the President’s proposal and the Thomas-Neal Bill (H.R. 682, the
House counterpart of S.12, the Roth-Breaux Bill in the Senate). (For details, see Federal
Legislation Committee memorandum No. 37-94, dated 12-8-94, No. 38-94, dated 12-9-94 and
No. 3-95, dated 1-16-95.)
In the testimony, the Institute strongly supported the American Dream Savings Account
proposal, and recommended adding to it legislation re-establishing universal access to a fully
deductible IRA. Mr. Brennan stated, "Our best recommendation is: make the IRA available as
broadly as possible; keep it simple; make it permanent."
A copy of the Institute’s testimony is attached.
This memo can also be found on FUNDS, the Institute’s Fund User Network and
Delivery System, under "Legislative Affairs; Washington Update."
Julie Domenick
Senior Vice President
Legislative Affairs
Attachment