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Would Roth 401(k)s Lead to Lower Savings Rates?

New data emerges ahead of tax-reform debate.

By Nick Thornton | Updated on August 16, 2017
Do the tax incentives of traditional 401(k) plans really provide incentive to save for retirement?

That question may emerge at the forefront of Congress’ debate over tax reform, which is expected to ratchet up when lawmakers return from their summer recess in September. The White House has pledged to have a tax reform bill on the Senate floor by November.

Details on the framework for reform are few at this point, but at a recent forum hosted by Americans for Prosperity, a conservative activist organization, a White House official confirmed that the tax-preferred status of 401(k) and IRA contributions are being considered to offset lower individual tax rates.

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