Does Capping 401(k) Tax Deductions Disincentivize Retirement Saving?
Robert R. Johnson
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.
Chang, Ellen, "Does Capping 401(k) Tax Deductions Disincentivize Retirement Saving?" (2017). In the News. 2569.