Tag: 401k
The brief’s key findings are: As part of tax reform, Congress considered changes to 401(k)s that would require most new contributions to go to a Roth, rather than a traditional, account. This budget gimmick would help pay for tax cuts because Roths are taxed up-front, rather than in retirement. Such a change, however, could also…
Simple model suggests more saving, but real world frictions likely to produce less saving. For the record, we would not be discussing shifting from traditional to Roth 401(k)s except that Congress is looking for additional revenue to offset its proposed tax cuts over the next 10 years, the timeframe used for considering legislation. As background,…
