Tag: Pension Protection Act

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The Saver’s Credit gives a special tax break to low- and moderate-income taxpayers who are saving for retirement.  It was introduced in 2001 and scheduled to expire in 2006.  The Pension Protection Act of 2006, however, made the credit permanent and indexed the income thresholds.  The Saver’s Credit is in addition to other tax benefits…

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Abstract This paper estimates the short-run impact of the Pension Protection Act of 2006 (PPA2006) on holdings of employer stock in defined contribution pension plans. PPA2006 allowed participants in plans with employer stock to diversify their holdings. However, stand-alone ESOPs, i.e., those that do not allow employee elective deferrals or after-tax contributions, were exempt from…