Kudos to Rob Portman, our Republican congressman from Terrace Park, for getting his retirement reform package through the House — again. Finally, this bill has its best chance in years at passing, with more allies in the Senate and White House.

        Among other things, the bill would increase contribution limits on IRAs from $2,000 to $5,000 and 401(k)s from $10,500 to $15,000.

        Sounds great. But here's the catch: Hardly any of us are anywhere near contributing those limits right now.

        Let's look at 401(k)s.

        Hewitt Associates, a human-resources consultant in Illinois, says 22 percent of those eligible don't even participate.

        For those that do, their plans most commonly allow saving a maximum of 15 percent of salary in a 401(k). You would have to be making $70,000 to worry about reaching that $10,500 cap.

        And that's assuming you max out the plan. Hewitt also says two-thirds of surveyed employers report that their employees typically contribute between 5 percent and 8 percent of pay. You'd need to earn $210,000 and contribute 5 percent, or $131,250 and contribute 8 percent, to run afoul of existing limits.

        According to IRS statistics, fewer than 2 percent of Americans filing income taxes earn more than $200,000 a year. Fewer than 7 percent make $100,000 annually.

        And that doesn't even count all the millions of Americans who don't have a 401(k) offered to them. Hence the Democratic critique of the bill: It's a tax break for the rich only.

Aid for little guy

        But this is where Mr. Portman says the rest of his bill comes in.

        Other sections of the Comprehensive Retirement Security and Pension Reform Act are meant to help the little guy.

        The plan also would:

        • Increase retirement plans' portability for job changers.

        • Shorten the time it takes workers to become vested.

        • Let older workers contribute more to catch up.

        • Make it easier for small businesses to provide retirement plans.

        • Require greater disclosure if an employer changes the way pension benefits are accrued, as with cash-balance pensions.

        “People aren't saving enough for retirement,” Mr. Portman said last summer, during the bill's last go-round. “We want to encourage and implore people to set more aside so they have peace of mind in their retirement years.”

        Still, in order to work, this bill assumes that workers take advantage of what they have available to them. Almost everyone earning a paycheck can open an Individual Retirement Account — yet fewer than half have one, according to the Investment Company Institute.

        People who can't afford $2,000 a year for an IRA likely won't part with $5,000 any easier. But at least the opportunity is there.

        Amy Higgins writes about personal finance for the Enquirer. Reach her at 768-8373; ahiggins@enquirer.com; or Your Money, The Cincinnati Enquirer, 312 Elm St., Cincinnati, OH 45202.

Union cautions pilots about 'no' vote
DHL has big plans for hub
Building will automate air-freight operation
P&G nurtures pharmaceuticals
Hendricks quits Baldwin board
Portman bill won't help many
Prepare now for tax day
Stock of the week
The Week Ahead
Consumers spend; but how long?
Fewer saving for retirement
Tristate Summary
What's the Buzz?
Get ready to play on cell phone
Some healthy livestock killed