The likely effect of the Act's pension provisions will be to expand retirement plans that benefit only owners of businesses and to reduce dramatically the benefits granted to nonowner employees in small business plans. In large companies, these changes will benefit higher-level executives. The security of pensions and their tax benefits go to the higher paid.
IRAs throw tax benefits to the wealthy more than to the middle class.
To remain competitive in the workplace, employers often prefer to give these employees their wages directly in cash. If the goal of Congress is to promote retirement savings by those who otherwise might not save, it is doing the opposite by increasing the IRA limits and diverting funds from qualified plans. The Roth IRA is a complete shift of tax benefits to high-income taxpayers, providing tax benefits they do not need, to save money they already would be saving. It is deceptive to tout this legislation as benefiting women and promoting simplicity. Women who drop out of the workforce to raise children and then return must first earn enough money to play that catch-up game.