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T16-0160 - Tax Benefit of Certain Retirement Savings Incentives (Cash-flow Approach) by Expanded Cash Income Percentile, 2016

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 contributions to retirement accounts, accruals in IRAs, Keogh, and both defined contribution and defined benefit retirement plans; (b) repeal the saver's credit; (c) repeal exemption of income accrued within accounts; and (d) repeal tax on withdrawals from accounts as well as the early withdrawal penalty. Baseline federal tax burden differs from standard TPC tables in that tax incentives for retirement are treated on a cash flow rather than present value basis. Table shows the impact by income percentile under current law in 2016.

August 16, 2016