House Republican Budget Proposal Could Include Lower Qualified Plan Caps

The House Republicans' recent budget proposal for the fiscal cliff negotiations recommends using some of the ideas Erskine Bowles of the Simpson-Bowles Commission recommended to the Republicans in 2011. While the House Republican proposal is not specific on what aspects of this proposal it would want to use, the proposal did suggest that Congress could consolidate retirement accounts and cap all employer and employee contributions to the lower of $20,000 or 20% of income, a substantial reduction from what ESOPs and other plans are now allowed to deduct.