One of the significant economic events coming out of Washington in the last few days was the overwhelming vote by the House to raise the maximum contribution a person can make to his or her individual retirement account. For years $2,000 has been the maximum you could put in an IRA and get a tax deduction. The House voted to raise it to $5,000. Now if the stingy Senate will only go along.
If one starts saving early in a working career - say in their 20s - compound interest will give an individual more than $1 million in retirement funds. A couple could sock away more than $2 million in savings.
This would reduce pressure and reliance on the Social Security system and give people more of their own money. Coupled with a tax cut, the financial security of many families would be assured.
The House also voted to raise the limit of other employer-sponsored plans from $10,000 to $15,000. It's about time and it empowers more of us and less of government. Now let's see what the Senate does.