Automatic individual retirement accounts, a proposal by President Barack Obama, won't become a reality even if the president is re-elected, PSCA lobbyist Ed Ferrigno said Thursday.
Mr. Ferrigno, vice president of Washington affairs for the Plan Sponsor Council of America, also said he doesn't expect any action on expanding the definition of a fiduciary, as proposed by the Department of Labor and the SEC.
Mr. Ferrigno was speaking at the PSCA's annual conference in New Orleans.
As for prospects for tax reform next year, Mr. Ferrigno said, “Everyone wants to go to heaven, but nobody wants to die.” He acknowledged, however, that employer-provided health care and retirement plans/IRAs are the largest tax expenditures, at $180 billion and $166 billion, respectively.
Mr. Ferrigno said it is possible that a post-election Congress would eliminate itemized tax deductions for highly paid individuals. If that happens, he predicted Congress then wouldn't institute the talked-about 28% cap on retirement-plan deferrals.