Tag: retirement savings
Changes to the taxation of capital income can have a big effect. Retirement saving in typical employer plans – both defined benefit pension and 401(k) plans – is tax advantaged because the government taxes neither the original contribution nor the investment returns until they are withdrawn as benefits at retirement. If the saving were don…
Currently IRAs don’t increase retirement saving; balances are rollovers from employer plans. Individual Retirement Accounts (IRAs) were introduced in 1974 under the Employee Retirement Income Security Act. The goal was to enable those without pension coverage in employer-sponsored plans to save in a tax-deferred fashion. IRAs now hold almost half of total private retirement assets,…
