Tag: ‘401(k)s’

Marco Rubio Wasn't the Only One Who Cashed Out an IRA Last Year

By :: May 26th, 2015

It is easy to mock Senator Marco Rubio, who cashed out $68,241 in IRA retirement funds last September. The GOP presidential hopeful, who made about $230,000 last year, told Fox News he needed the dough to prepare for his campaign, buy a new $3,000 refrigerator, and fix his busted a/c. As it happens, he is far […]

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A Small But Important Change in Retirement Savings Rules

By :: April 27th, 2015

Earlier this year, the Obama Administration proposed a small and almost unnoticed change in retirement savings rules that could be a big help to middle-income seniors who want to preserve assets to pay for medical and long-term care costs in very old age. The proposal would exempt those who have $100,000 or less in retirement […]

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Will Consumers Come To Love Longevity Annuities?

By :: November 4th, 2014

Economists love longevity annuities. But what will it take to get real people to buy them? That’s one of the questions that two panels of retirement experts will tackle at a Brookings Institution event on Thursday. These retirement products work like this: At about age 65 you purchase an insurance policy that promises to pay […]

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How Asset Building Tax Subsidies Miss Their Targets

By :: October 7th, 2014

Nearly one-third of all federal tax expenditures–$384 billion in 2013 alone– is aimed at various forms of asset building, such as retirement savings, higher education, and home ownership. Yet, according to research by several of my Tax Policy Center and Urban Institute colleagues, these tax breaks do little to help low- and middle-income households build […]

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The Center for American Progress Rethinks Retirement Savings

By :: August 22nd, 2013

Kudos to Rowland Davis and David Madland at the Center for American Progress for rethinking retirement savings. In a paper with the rather understated title “American Retirement Savings Could Be Much Better,” the authors attempt to stitch together the best of defined contribution plans and defined benefit pensions. Their preferred vehicle is what’s known as a […]

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401(k) Plans May Be a Better Deal for Low Wage Workers Than We Thought

By :: January 10th, 2012

Tax-deferred 401(k) plans may be a better deal for low-income workers than economists thought, according to new research by my Tax Policy Center colleague Eric Toder and Urban Institute senior research associate Karen Smith. While high-income workers may get a bigger tax break from their 401(k)s, they also face a short-term trade-off. That’s because their […]

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