4 ms·

I think a simpler approach would be to eliminate 401k and similar programs, increase the IRA limit, and allow employers to contribute to an employee's IRA in th

I think a simpler approach would be to eliminate 401k and similar programs, increase the IRA limit, and allow employers to contribute to an employee's IRA in the same way as a typical payroll deposit. That would make things _way_ simpler for everyone, and maybe people would feel confident enough in their understanding of retirement accounts to actually use them... We don't need _more_ accounts, just simplify the ones we have and consolidate.

philwelch 8y ago
How is that simpler than just letting every existing savings or brokerage account act like an IRA with absolutely no contribution limit or penalty for early withdrawal? That doesn't create more accounts, it just gives the existing tax benefits (and then some!) to the accounts that everyone already has. You would probably end up just eliminating the 401(k) and IRA classifications and converting those accounts into normal brokerage accounts.