Killing 401(k) Tax Benefits Could Help Save Social Security, New Research Shows
- The Share of Homes for Sale With Price Cuts Hit a 6-Year High
- Young Job Seekers Are Falling Victim to a ‘Money Mule’ Scam
- When Will the Fed Cut Rates? Cooling Inflation Builds Hope for September
- To Save Money on Insurance, Drivers Are Agreeing to ‘Incredibly Intrusive’ Monitoring Technology
- Why People Are Giving up on Buying Vacation Homes
- Here’s Why a Gas Tax Holiday Isn't as Great as It Sounds
- Gas Prices Are Over $4 in Every State for the First Time
- 7 Strategies People Are Using to Combat High Gas Prices
- Gas Prices Just Passed $6 in a Major U.S. City for the First Time Ever
- Your State Taxes on Groceries, Income, Gas and More Could Soon Be Slashed
A new idea for addressing Social Security’s looming funding gap proposes that Congress eliminate tax advantages for 401(k)s to come up with funds to continue paying retirees’ benefits.
Ending certain tax preferences for retirement plans could correlate to a $185 billion annual increase in tax revenues, which would cover most of Social Security’s funding shortfall, according to a brief published by the Center for Retirement Research at Boston College.
Social Security is facing a funding gap. If no action is taken, Social Security benefits are at risk of being cut by 20% in 2034 — the projected depletion date for surpluses in Social Security trust funds.
While that’s a decade away, Alicia Munnell, management sciences professor and director of the center, says the goal of the research is to spur action from lawmakers who haven’t shown much progress on any other solutions to fix Social Security.
