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Does Capping 401(k) Tax Deductions Disincentivize Retirement Saving?

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It has been argued that the proposal initiated by several House Republicans to slash tax deductions for 401(k) plans to a mere $2,400 from $18,000 disincentivizes American workers who are already failing to save enough for their retirement.

Obliterating the impetus for employees to save more for their retirement would be a misguided move, since the average American already does not set aside enough money for retirement.