Raise the 401(k) employee elective deferral limit (USC 26 § 402(g)).
Specifically, amend the Internal Revenue Code to allow individuals to contribute up-to the Defined Contribution Deferral (employer/employee combined) limit (USC 26 § 415(c)(1)).
Reasoning-
- Equity - This proposal will level the playing field for individuals employed by companies that do not contribute to employee's 401(k).
- Women/care givers would be able to build up a larger retirement nest egg prior to having children. According to a Dept of Labor publication "working women are more likely than men to interrupt their careers to take care of family members. Therefore, they work fewer years and contribute less toward their retirement, resulting in lower lifetime savings." (Women And Retirement Savings).