Retirement Arrangements of the Self-Employed

23 Pages Posted: 13 Oct 2009

See all articles by David Joulfaian

David Joulfaian

U.S. Department of the Treasury, Office of Tax Analysis (OTA); Georgetown University - Department of Economics

Date Written: October 13, 2009

Abstract

When compared to wage earners, the take up rate of qualified retirement plans by the self-employed seems to be much lower. This paper explores the various factors that influence the observed participation and contributions to such plans. The findings show that participation declines with business interest expenses suggesting liquidity constraints. In contrast, both participation and contributions rise with mortgage interest expenses. They also rise with interest and dividend income, self-employment income, as well as tax rates. On the other hand, they decline with the size of partnership income. The latter is perhaps a reflection of reporting conventions employed by high income partners which may mask the true participation rate.

Keywords: Taxes, Retirement Saving, Self-employment

JEL Classification: H24, J26, L26

Suggested Citation

Joulfaian, David, Retirement Arrangements of the Self-Employed (October 13, 2009). Available at SSRN: https://ssrn.com/abstract=1488418 or http://dx.doi.org/10.2139/ssrn.1488418

David Joulfaian (Contact Author)

U.S. Department of the Treasury, Office of Tax Analysis (OTA) ( email )

1500 Pennsylvania Ave. NW
Washington, DC 20220
United States

Georgetown University - Department of Economics ( email )

37th St NW & O St NW
Washington, DC 20007
United States

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