Retirement Plans

* Re “Retirement Plans: a Wider Field,” editorial, July 21: Voluntary contributions to 401(k) plans and traditional IRAs are tax deferments with the lost revenue of today being made back in spades when distributions are made in one’s retirement years. These tax deferments are a great hedge for the government against the inevitable bust that the retirement of the baby boomers will create.

As for those living from paycheck to paycheck being left out of the House bill [raising contribution limits], The Times’ solution is unrealistic. With more and more of the work force employed by small business, pension plans are rapidly becoming dinosaurs and no amount of tax incentives--short of outright subsidies--will reverse this trend.

One can actually make the case that this bill aids retirement for those less fortunate or forward-thinking. With millions of baby boomers flush with seven-figure IRA accounts, it will make means-testing for Social Security much more politically palatable.

JAMES STIRLING

Escondido