Retirement Security and Savings Act of 2001

The Retirement Security and Savings Act of 2001 (S. 742) is a comprehensive proposal designed to help Americans save more for their future by expanding and updating federal pension and tax laws. The bill would increase the annual contribution limits for Individual Retirement Accounts (IRAs) and 401(k) plans, while allowing workers age 50 and older to make additional "catch-up" contributions to accelerate their savings.

For everyday citizens, the bill aims to make retirement planning more flexible and accessible by simplifying the rules for rolling over funds between different types of employer plans and IRAs. It also introduces new tax credits for low- and middle-income savers and provides incentives for small businesses to start retirement plans for their employees. Additionally, the legislation would speed up "vesting" schedules, ensuring that workers can keep the matching contributions made by their employers after a shorter period of service.