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Defined Benefit Consultant/Enrolled Actuary Pension Plan Specialists, PC
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Highest Earners Get Biggest Tax Breaks for Saving for Retirement
Economic Policy Institute 
Oct. 22, 2009 Excerpt: Low wage earners face the most challenges saving for retirement, yet the tax subsidies for retirement saving are skewed overwhelmingly in favor of top earners. Since tax breaks for 401(k)s and similar retirement plans are tied to a participant's income tax rate, low-income taxpayers receive modest or no tax subsidies for each dollar put into these plans. The highest-paid workers, who have more resources to save for retirement without government assistance, receive the largest tax breaks. |
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