Of the many proposed legislative changes that might occur during the presidency of Donald Trump, the one with the highest probability of actually becoming law is a reduction in corporate tax rates. While we are considering making changes to the tax laws, I have a modest, related proposal that won't cost very much and has enormous potential benefits: Raising the ceiling on contributions to individual retirement accounts (IRAs), 401(k)s and other tax-deferred retirement-savings accounts.
At a minimum the IRA contribution ceiling should be tripled to $15,000 a year, and indexed to inflation, and the 401(k) limit should be doubled to $36,000 a year. QuickTake America's Retirement Gap
Let's begin with the basic facts: For this year, IRAs top out at $5,500 a person ($6,500 if you are 50 or older); 401(k)s max out at $18,000 ($24,000 if you're 50-plus).
Those numbers are, to be blunt, absurd. Without any changes, the U.S. will face a retirement crisis in the next 20 years or so. Raising the limits would be the first of several steps the U.S. should take to avoid that fate. (Fixing Social Security and Medicare are subjects for another column.)