Distributional effects of defined contribution plans and individual retirement arrangements

Leonard Burman, William G. Gale, Matthew Hall, Peter R. Orszag

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

This paper incorporates retirement saving incentives into the Tax Policy Center microsimulation model and analyzes the distributional effects of current tax preferences for saving. As a share of income, tax-preferred saving incentives provide the largest benefits to households with income between $75,000 and $500,000, roughly the 80 th to 99 th percentile of the income distribution. In 2004, the top 20 percent of tax filing units by income will receive 70 percent of the tax benefits from new contributions to defined contribution plans and almost 60 percent of IRA tax benefits.

Original languageEnglish (US)
Pages (from-to)671-690
Number of pages20
JournalNational Tax Journal
Volume57
Issue number3
StatePublished - Sep 2004
Externally publishedYes

Fingerprint

Tax
Defined contribution plan
Distributional effects
Retirement
Income
Incentives
Unit tax
Household
Microsimulation
Income tax
Income distribution
Retirement saving
Tax policy

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

Cite this

Distributional effects of defined contribution plans and individual retirement arrangements. / Burman, Leonard; Gale, William G.; Hall, Matthew; Orszag, Peter R.

In: National Tax Journal, Vol. 57, No. 3, 09.2004, p. 671-690.

Research output: Contribution to journalArticle

Burman, Leonard ; Gale, William G. ; Hall, Matthew ; Orszag, Peter R. / Distributional effects of defined contribution plans and individual retirement arrangements. In: National Tax Journal. 2004 ; Vol. 57, No. 3. pp. 671-690.
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