401(k) plans don't work for low- and middle-income Americans, Jack Lew, President Obama’s nominee to replace Timothy Geithner as Treasury Secretary, said yesterday. Lew’s comment came in response to a question posed by Sen. Rob Portman (R-Ohio) about the tax incentive and effectiveness of 401(k) plans during a hearing of the Senate Finance Committee to consider Lew’s nomination.
ASPPA’s Government Affairs staff has already expressed concern about Lew’s comment to Treasury Department officials — including Lew’s apparent disregard for data proving that 401(k)s are how middle America saves for retirement. One study, for example, indicates that 80% of participants in 401(k) plans earn less than $100,000 a year.
