The House Committee on Education and Workforce has approved a retirement security bill, the tax aspects of which met with approval from the Ways and Means Committee earlier this week.

The Comprehensive Retirement Security and Pension Reform Act of 2001, H.R. 10, will go before the entire House the week of April 30. The bill will "maximize every American's opportunity for a safe, secure retirement," according to Workforce Committee chairman John Boehner, R-OH.

The bill expands retirement plans for small businesses, shortens vesting periods, increases the portability of pension plans, and makes it easier for employers to implement pension plans for employees. In addition, the bill phases in an increase in the annual contribution allowed to Individual Retirement Accounts (both traditional and Roth) from $2,000 to $5,000, and then provides for a ratable increase indexed for inflation. There is also a provision for taxpayers over age 50 to begin contributing $5,000 to IRAs in 2001.