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Even if you don't abolish these, you could at least cap the total contribution (and even lift the annual contribution limit). A cap of $1.0 million per individ
by resalisbury 8y ago
Even if you don't abolish these, you could at least cap the total contribution (and even lift the annual contribution limit). A cap of $1.0 million per individual would allow for a safe withdrawal rate of approx. $40k / year (social security income would provide a further boost to that). You could move the cap higher or lower as you see fit.
There are over 150,000 individuals w/ a 401k balance over $1.0 million; there is little social benefit in providing millionaires with even more in a tax advantaged savings.
https://www.investors.com/etfs-and-funds/retirement/retirement-savings-more-americans-than-ever-have-1-million-or-more/ https://www.investors.com/etfs-and-funds/retirement/retireme...
- cromwellian 8y ago$40k year is below the cost of living, or will be, in many regions. People also use 401ks for home loans, and for other lie events. I took a 401k loan to make the down payment on my first house. Most high income truly rich people aren't using 401ks for retirement, it seems to me that once again, people are going after the professionals who are squeezed in the middle, who already pay high tax rates because most of their income is wages -- doctors, lawyers, engineers, and avoiding the top 0.1% and others who amass vast returns and mostly avoid income taxes. Maybe we could try going after the big fish first before we start raiding retirement savings?