What's the Tax Advantage of 401(K)s?

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February 16, 2012

This article discusses how tax reform is high on the nation’s agenda and while Republicans and Democrats may disagree about the extent to which tax increases should be part of the deficit reduction effort, they generally agree that a broader base and lower rates for the federal income tax would promote fairness and boost economic growth. The base-broadening discussion inevitably raises the question of cutting back on some “tax expenditures.” These expenditures are revenue losses attributable to provisions of the tax laws that are designed to support particular activities. Prime examples are the provisions designed to encourage retirement savings...

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