Americans continue to strongly support the tax incentives that are part of defined contribution retirement plans, according to a study by the Investment Company Institute released Tuesday.
Most U.S. households, both with and without defined-contribution retirement plans, oppose Congressional proposals to remove or reduce the tax incentives that accompany 401(k) plans and IRAs. Similar findings were revealed in past studies.
Eighty-eight percent of all households say the tax incentives for DC plans should not be changed and 90 percent say the limit for the amount that can be contributed should not be lowered. Eighty-six percent said the same last year.
Even among households not owning 401(k) plans or IRAs, 80 percent rejected the idea of taking away or reducing the current tax treatment of DC accounts, according to the survey, American Views on Defined Contribution Plan Saving. Last year 81 percent felt the same.
Eighty percent of those with DC accounts say the tax treatment of their retirement plans is a big incentive to contribute, says ICI, an association of regulated funds. The survey is based on 3,000 respondents.
Eighty percent of all U.S. households holding DC plans say they have confidence in the plans’ abilities to help people reach their retirement goals. Even among those not holding DC plans, 60 percent say they have the same confidence.