Fred Reish Explains Concerns With the American Rescue Plan Act of 2021

In “Biden Stimulus Would Cap 401k Plan Contribution Increases,” 401(k) Specialist turned to benefits and executive compensation partner Fred Reish for insight on the American Rescue Plan Act of 2021, which calls for a freeze on annual cost-of-living increases to contribution limits for defined benefit and defined contribution retirement plans.

“The risk is that this change will, over time, reduce the attractiveness of retirement plans for the owners of closely-held and family businesses, which could result in fewer plans being set up by small companies,” said Reish. “In addition, it overtly favors employees in negotiated plans, which many may view as inappropriate.”