NAPA and ASPPA have launched the Save My 401k campaign to protect the tax incentives of employer-sponsored retirement plans from the threat of tax reform. The goal: to educate members of Congress and urge them to preserve those tax incentives.
“The single most important factor in determining if a worker is saving for retirement is whether or not there is a plan at work. Last time Congress took up tax reform in 1986, employees 401(k) plans were cut by 70%, resulting in a mass termination of plans,” said Brian Graff, ASPPA’s and NAPA’s Executive Director and Chief Executive Officer.
According to data from the Employee Benefit Research Institute (EBRI), more than 70% of workers earning from $30,000 to $50,000 participate in their employer 401(k) plans, compared with only 5% who save for retirement without a plan at work. When families have a retirement savings account, those savings represent more than 65% of their financial assets.
“We understand Congress needs to reduce the debt and raise revenue, but raiding the tax incentives for 401(k) plans will put American workers’ retirement security at risk. Tens of millions of Americans participate in these retirement plans, and 80% of them earn less than $100,000 per year. This is a battle that American workers simply can’t afford to lose,” said Graff.
Graff’s video message to NAPA members about how advisers play a critical role in involving plan sponsors and participants in the campaign is below.
