Regarding the need and/or desire for some aging boomers to work beyond normal retirement age, Katz asked Congress not to hinder boomers' ability to actively participate in the economy. "Revisit legislation that makes it difficult or impossible for us to continue working into our 70s or possibly 80s," she said.

For his part, Keeler, a partner with Everhart Financial Group Inc. in Dublin, Ohio, spoke of the challenges small businesses face in funding and maintaining retirement plans during the economic downturn. To encourage small businesses to maintain their plans, Keeler suggested enhancing the current tax credit used to offset the startup cost and the cost of educating employees about the new plan.

Created under The Economic Growth and Tax Relief and Reconciliation Act, the credit is available to offset costs paid or incurred in tax years beginning after December 31, 2001, for retirement plans that first become effective after that date, Keeler said. The credit currently equals 50% of the cost to set up and administer the plan and educate employees about the plan, up to a maximum of $500 per year for each of the first three years of the plan. This credit is limited to those employers with 100 or fewer employees who received at least $5,000 in compensation for the preceding year; at least one participant must be a non-highly compensated employee.

"This credit should be broadened to include any employer with less than 500 employees, and it should also be broadened to offset employer contributions to a retirement plan," Keeler said.


To see Katz's or Keeler's full testimony, click here.

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