Key Elements: Savings and Retirement

This section discusses tax provisions designed to encourage saving, particularly for retirement, as well as who benefits from those provisions.

• What kinds of tax-favored accounts are there?
• How large are the tax expenditures for retirement saving?
• What are defined benefit retirement plans?
• Who uses tax-favored retirement savings accounts?
• What are defined-contribution retirement plans?
• What types of non-employer-sponsored accounts are available?
• How does tax-favored retirement saving affect national saving?
• Where does the tax saving come from?
• What is an automatic 401(k)?
• How might saving be encouraged for low- and middle-income households?