Request for Comments regarding Executive Order No. 13369

> Submitted by:

Gary Rotatori

14 Olde Surrey Lane

# Medway, MA 02053

Date: March 18, 2005

Categories of submitter: Individuals

Request for Comments regarding Executive Order No. 13369

**Comments:**

Current 401K rules are outdated and unfairly limit the amounts
individuals can contribute to their company 401K plans. They are
discriminatory to certain individuals based on the specific company they
work for and their earnings.

The rule restricting "highly compensated" individuals on the amount they
can contribute to their company' 401k plans needs revising. Currently,
employees earning more than \$92,000 per year are restricted in the
amounts they can contribute based on non-discrimination compliance test
results of their company's 401k plan. It is ironic that these
*non-discrimination compliance* tests are in themselves discriminatory.
They select certain income level individuals working for specific
companies, and deny these individuals the right to contribute to the
full amount to their 401k plans, while allowing others earning much
higher incomes to fully contribute without any restrictions.

The situation arises when a company has poor participation in their 401K
plan by those not considered "highly compensated". The highly
compensated individual is not allowed to contribute fully to their 410K
plan, because others chose not to contribute or not to contribute at
higher levels. We should not have rules that prohibit or restrict an
individual in their contributions to a 401K plan based on the refusal of
others to participate or contribute fully.

There are individuals that earn more than a million dollars a year, and
they can contribute the maximum 401K contribution of \$13,000 in 2004,
and yet we have others earning only \$98,000 a year that are told that
they can only contribute \$7,200 to their 401K plan (similar to my
personal situation). This isn't fair to allow the super wealthy to fully
contribute to their 401K plan, and then not allow others to fully
contribute to their company's plan just because they work for a
different company that doesn't have enough of the lower end wage earners
contributing. This appears to be very discriminating, as it is solely
based on the company you work for and not your total earnings.

## Request for Comments regarding Executive Order No. 13369

*Comments continued from previous page:*

The way it currently stands, individuals considered "highly compensated"
and working for companies in the lower wage segment industries such as
agriculture are discriminated from fully participating in their
company's 401K plan because the lower wage earners cannot or choose to
not participate fully in their 401K program, and anyone earning over
\$92,000 and working for these same companies will be denied the ability
to fully contribute to their 401K plan. While, those "highly
compensated" individuals working in higher paying industries, will be
able to fully contribute to their 401K plan just because their typical
wage earner has more money and contributes to their company's 401K plan.

Why should someone earning less than \$100,000 a year be denied
contributions to their 401K plan, and yet someone earning over a Million
dollars a year be allowed to fully contribute? This rule limiting an
individual's desire to fully contribute to their company's 401K plan in
this day and age of uncertainty regarding the future Social Security
retirement programs, seems indefensible. The rule needs to be changed

I request that the rules restricting contributions be reviewed and
changed to allow fair and full contributions regardless of an
individual's income or the company one is employed with.

Sincerely,

Gary Rotatori

\-\-\-\--Original Message\-\-\-\--

From: Gary Rotatori
\[[[mailto:garyr@sungro.com]{.underline}](mailto:garyr@sungro.com)\]

Sent: Monday, March 21, 2005 10:42 AM

To: comments@taxreformpanel.gov

Subject: Comments submitted for Executive order No. 13369

Attached are my comments to be submitted for Executive order No. 13369

Gary Rotatori