Skip to Content

Economic Recovery Tax Act of 1981 (ERTA)

Last Updated March 20, 2009

Definition

ERTA changed the laws to allow participants covered by employer-sponsored plans to make participant contributions to IRAs. Prior to ERTA, only individuals not covered by an employer sponsored plan could make regular contributions to IRAs.

Referring Cite

IRC §

Additional Helpful Information

  • ERTA increased contribution limits to SEP IRAs to $15,000 per year. This has since been increased by other tax laws
  • ERTA made investment in collectives a prohibited transaction.