401(k) tax changes would slash retirement savings

While the House and Senate tax bills were taking shape, lawmakers floated some changes to 401(k) contributions. A survey conducted around that time shows just how deeply those changes would have affected savers.

Three-quarters of nonretired investors in a new Wells Fargo/Gallup poll had a 401(k) plan, and a third cited tax deferral on the money they contribute as their plan’s most valued feature.

And what if their plan’s tax-deferred status were eliminated? Forty-six percent of respondents said they would save less or just stop saving, and 42% would save about the same amount.

The telephone survey was conducted in early November with 1,015 U.S. adult investors, 67% of whom were nonretired and 33% of whom were retired.


continue reading »