CONGRESS: DO NOT LIMIT RETIREMENT SAVERS' CHOICE
RITA is working diligently to push back against recent proposals by the U.S. House of Representatives Committee on Ways and Means. While these new rules are meant to target the ultra-wealthy, its unintended consequences would victimize millions of ordinary investors.
RITA'S RESPONSE TO PROPOSED IRA LEGISLATION
The Retirement Industry Trust Association (RITA) is the leading educator and advocate for the growth of and guidelines for the self-directed retirement plan industry. We seek to accomplish our goals by providing resources, information, communication, and support to both our members and consumers. RITA’s members support retirement savers who are seeking to diversify their nest egg, invest in what they know, and invest in their local communities.
In response to the proposed legislation as it currently stands:
RITA supports a sensible and reasonable cap.
However, RITA has significant concerns with some of the IRA provisions proposed in connection with the Ways and Means markup of the Build Back Better Act.
RITA opposes changes that would force retirement savers out of Main Street and small business investments and limits investment choice.
The bill would make an end run around longstanding and bipartisan SEC rules regarding non-publicly traded securities, and would undermine the expanded job creation mechanisms of the bipartisan JOBS Act.
RITA opposes other new restrictions on Main Street investments.
The bill would prohibit an IRA owner from owning, among the individual, family members, and the IRA, more than 10% of a business, other than a publicly traded company, which will harm small closely held businesses.
RITA believes Congress should fully consider grandfather issues.
While RITA supports a reasonable cap, the economic impact of forced sales of existing investments should be more fully considered.
CONTACT YOUR ELECTED OFFICIALS
& MAKE YOUR VOICE BE HEARD
Contact your elected officials in the United States House of Representatives and Senate, and tell them:
You oppose limitations on IRA investment choice (Sections 138312 and 138314 of the House Reconciliation Bill). These under-the-radar provisions have never been publicly vetted and will have unintended and adverse impacts on you and millions of other Americans who wish to save for a secure retirement through Main Street investments.
Specifically, the legislation:
- Negatively impacts your ability to save for a secure retirement by limiting your choice and ability to diversify your retirement savings outside of the stock market.
- Will cause you significant negative financial consequences by forcing you to sell existing IRA investments at a depressed price by a publicized certain date, and also cause significant negative tax consequences (including early distribution penalties) by forcing you to distribute from your IRA any investments that you are unable to sell.
- Negatively impacts the ability of small businesses that employ everyday Americans to obtain the funding necessary to operate and grow their business and create jobs. The proposed legislation eliminates the ability of suitable investors to participate in private capital-raising transactions through their IRAs, a source of funding on which many of these small businesses rely.