Online-Survey-Icon-or-logo“Nearly nine in 10 households oppose any action by the government taking away the tax advantages of DC retirement accounts,” writes Rebecca Moore in an excellent article headlined Americans Want to Preserve Tax Incentives of Retirement Plans. Other excerpts from the piece:
“A strong majority of U.S. households—including those with and those without retirement plan accounts—disagree with proposals to remove or reduce tax incentives for retirement savers using defined contribution (DC) accounts, according to new survey findings by the Investment Company Institute (ICI).
“Eighty-eight percent of households disagreed with the notion that the government should take away the tax advantages of DC accounts, and 90% disagreed with reducing the amount that individuals can contribute to DC accounts. These percentages are up from 86% and 83%, respectively, one year ago.
“Even among households not owning DC accounts or individual retirement accounts (IRAs), more than eight in 10 rejected the idea of taking away or reducing the current tax treatment of DC accounts.
“Eight in 10 households with DC accounts said the tax treatment of their retirement plans is a big incentive to contribute.
“Nine in 10 DC account-owning households said they appreciate paycheck-by-paycheck saving, and nearly all DC account-owning households agreed that choice in, and control of, the investments in their retirement plan accounts is important. Among U.S. households, whether they owned retirement accounts or not, most generally expressed confidence in DC plans’ ability to help individuals meet their retirement goals. Eight in 10 households owning DC accounts or IRAs indicated such confidence. Even among households without a DC account or IRA, three in five reported having this measure of confidence.
“ICI’s latest report, “American Views on Defined Contribution Plan Saving’, is based on survey results from more than 3,000 respondents in November and December 2014.”