Tag: leakage
When it makes sense to dip into your retirement account — and when it doesn’t. When policymakers consider leakages from 401(k) plans, they must balance two conflicting goals: 1) keeping tax favored savings in the plan so that funds are available at retirement; and allowing access to participants who need their money, which can encourag…
Leakages probably reduce age 60 balances by 30 percent. Is that bad or good? Researchers from the Treasury and Congress’ Joint Committee on Taxation have provided new estimates of how much money “leaks” out of 401(k)s and IRAs based on restricted tax data. It’s a welcome addition to the literature because the existing range of…
