A main focus of this year’s presidential election campaign — in the debates as well as the candidates’ TV and print ads — has been the plight of middle class Americans, with both candidates promising to relieve the tax burden on the middle class. But did you know that tax-deferred contributions to 401(k) plans play a central role in middle class Americans’ retirement savings?
IRS data show that participation in 401(k) and other DC plans is heavily weighted toward the middle class. The numbers: 38% of DC plan participants make less than $50,000 a year, and another 36% make between $50,000 and $100,000. Together, that means that among active participants in 401(k) and other profit-sharing plans, about three out of four make $100,000 a year or less. Try dropping that number on the next person who argues that 401(k)s are mainly for the wealthy.
This information comes from an “infographic” (see below) produced by the American Society for Pension Professionals and Actuaries. Along with a wide range of other content — including videos, articles, and even an online video game — a series of ASPPA infographics like this one will be featured on SaveMy401k.com, a new website set to launch Nov. 12. The launch of the website will kick off a concerted effort by ASPPA and NAPA to protect the tax-deferred status of 401(k) plans as the debate over tax reform heats up on Capitol Hill.
Click here to download a pdf file of this infographic.
