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T17-0129 - Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach), Baseline: Current Law, Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2017

Distribution of the tax benefits of retirement savings incentives measured using a cash flow approach that compares current law with a proposal that would (a) repeal the tax deferral of ontributions to IRAs, Keogh accounts, defined contribution plans and defined benefit retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within these retirement savings accounts; and (d) repeal tax on pension income, withdrawals from retirement savings accounts, as well as the early withdrawal penalty. Only impacts of these repeals in the current year are accounted for, which differs from standard TPC tables where tax benefits of retirement savings incentives are calculated on a present value basis. Table shows the impact by income percentile under current law in 2017.