March 16, 2005
House and Senate Bills Encourage SAVE-ings
With the debate over social security and retirement options in full swing, some legislators are looking for alternative ways to encourage people to save money. Senator Craig Thomas (R-WY) and Representative Sam Johnson (R-TX) have introduced three legislative measures as part of the “SAVE” initiative to encourage workers and employers to save money for necessities and retirement.
The Savings Accounts Vehicle Enhancement, SAVE Initiative, is comprised of three separate bills for Lifetime Savings Accounts (LSAs), Retirement Savings Accounts (RSAs), and Employer Retirement Savings Accounts (ERSAs).
“Allowing individuals to save money and accumulate tax-free interest in an important step toward tax reform,” Thomas said. “As Social Security strains under increasing pressure, it’s even more important that we recognize that Social Security was never intended to be a sole source of retirement income. We must provide a simpler, more responsive system for Americans to accumulate personal savings for retirement.”
Lifetime Savings Accounts would have a $5,000 annual contribution limit from non-deductible (after-tax) contributions and would accrue tax-free earnings. People would be able to withdraw money at any time without penalty and the withdrawals would not be taxed. The withdrawals could be used for anything and there are no limitations on income or age for contributors.
Retirement Savings Accounts would also have a $5,000 annual contribution limit. These contributions are again non-deductible and the money would be available for withdrawal after age 58 or upon death or disability. People would also be able to convert existing Individual Retirement Accounts into these new accounts.
Employer Retirement Savings Accounts would attempt to combine and streamline current rules for 401k, 403b, simple 401k, Governmental 457, SARSEP, or simple IRA accounts. Additionally, the ERSAs would be available to all employers.
Secretary of the Treasury John Snow said that the legislation had President Bush’s full support in a press conference last week. He also lauded measures such as Health Savings Accounts and personal accounts under Social Security.
“Personal savings rates in the United States since 1960 have reached a new low at less than 2 percent,” said Thomas on the floor of the Senate last week. “These bills will encourage additional savings and reduce the temptation for individuals to tap into retirement savings for other, pre-retirement purposes.”
For more information on the SAVE Initiative (S. 545, 546, 547 and H.R. 1161, 1162, 1163), visit http://thomas.loc.gov/. To contact your legislators regarding this issue, visit the online Legislative Action Center at http://advocacy.NASE.org.
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NASE Recognizes Importance of Women-Owned Businesses
March is Women’s History Month and the National Association for the Self-Employed (NASE) recognizes the great strides women have made in business ownership over the years. As a result, the NASE continues to work with and for women entrepreneurs to promote women-owned businesses.
According to the National Women’s Business Council, a bipartisan federal advisory council created to give advice and policy recommendations to the President, the number of women-owned businesses continues to grow at twice the rate of all U.S. firms with one in eighteen women in the U.S. being a business owner. The NASE, the nation’s leading resource association for micro-business owners, implemented the Women Entrepreneurship Initiative to address the needs of women micro-business owners.
The NASE Women Entrepreneurship Initiative began three years ago as a proactive response to the growing trend of women-owned businesses. The initiative includes sponsoring women-business conferences and trade shows across the country and offering benefits that appeal more to this group.
The Women Entrepreneurship Initiative also included the commission of the NASE Women’s Advisory Council, consisting of up to ten NASE Members from across the country, in various industries and with a range of entrepreneurial experience. The objective of the Women’s Advisory Council is to help shape and advance the NASE’s membership offerings and national political and economic agenda for women entrepreneurs.
Additionally, last year the NASE launched women.NASE.org, a Web site devoted exclusively to being a practical tool for women entrepreneurs. The site provides valuable business information and resources. It also operates as a forum for women to share their experiences with one another.
“The NASE recognizes the contributions women entrepreneurs bring to the economy and our society,” said NASE President Robert Hughes. “We continue to adapt our strategies to benefit women micro-business owners and are proud of the work of our Women Entrepreneurship Initiative.”
For more information, visit http://women.NASE.org/.
AHP UPDATE: House Committee Hashes Through Bill
As mention in the March 2nd Washington Watch, association health plan (AHP) bills have been introduced in both the House and the Senate. This week, the House Education and the Workforce Committee will mark up the House version of the bill (H.R. 525). The House passed the exact language of H.R. 525 twice during the 108th Congress and is likely to do so again. The challenge for proponents will be in the Senate.
To contact your Members of Congress to tell them why association health plans matter to you, visit the online NASE Legislative Action Center at http://advocacy.NASE.org.
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NASE Sponsors Women’s Business Growth Forum
The NASE was a proud sponsor of the Wall Street Meets Main Street Women’s Business Forum in New York City this week. The forum was designed to bring women entrepreneurs together to learn how to grow their businesses. Entrepreneurs presented growth plans and worked through them with a panel of business experts.
The conference was put on by Count Me In, an organization that champions women's economic independence by providing access to business loans, consultation and education. Count Me In seeks to make women visible, valued and more powerful in the economy by addressing the systemic challenges that women face in traditional lending institutions.
The gala featured an announcement and call for women entrepreneurs to be a part of a new reality show, MS. MOGUL. The show will feature entrepreneurs and CEOs coming together to mentor aspiring women moguls of tomorrow. Women with their own businesses with revenues from $0 to $250,000 are encouraged to apply.
For more information about the conference, read the entire press release at http://news.nase.org/nase_about/PressRelease.asp?PRID=109. To learn more about the MS. MOGUL television show, visit http://www.nelygalan.com/upcoming.htm. For more resources for women entrepreneurs, visit http://women.NASE.org/.
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NASE Social Security Member Survey
Take the online member survey on Social Security reform. Let the NASE know your opinions on Social Security by visiting the MyNASE Web site at http://my.nase.org/. Log in to your free MyNASE Web Account. If you have not set up an account, you can do so at http://my.nase.org/ with your member number. Let your voice be heard in the association by taking this Social Security survey during the month of March.
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