We propose raising the IRA contribution limit to $18,000/year - making it equal to the 401k contribution limit. Currently, Traditional and Roth IRA contribution limits are capped at $5,500/year. However, most Americans work for small to mid-size businesses and many don't have access to a 401k plan at work. If they do, they often have high fees and poor investment choices relative to the available IRA options.
Most financial advisers recommend that you save at least 15% of your income for retirement. Unfortunately, this is impossible for anyone making over $36,667/year that does not have access to a 401k at work. If you make the U.S. median wage of $51,939, the most you can save is 10.6% of your income. Raising the IRA limit would help to solve our country's retirement crisis.