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The Influence of Automatic Enrollment, Catch-Up, and Ira Contributions on 401(K) Accumulations at Retirement

28 Pages Posted: 28 Jul 2005  

Sarah Holden

Investment Company Institute

Jack VanDerhei

Employee Benefit Research Institute (EBRI)

Abstract

This paper builds on the model scenarios presented in Holden and VanDerhei ("Can 401(k) Accumulations Generate Significant Income for Future Retirees?" ICI Perspective, Vol. 8, no. 3, and EBRI Issue Brief 251, November 2002; and Appendix: EBRI/ICI Accumulation Projection Model, ICI Perspective, Vol. 8, no. 3A, November 2002 - Appendix). It presents new scenarios that examine the role that 401(k) accumulations might play in retirement by analyzing certain factors that influence outcomes for 401(k) participants, including: plan design, through automatic enrollment; tax policy, through catch-up contributions; and individuals themselves, through saving in IRAs when not offered 401(k) plans.

Keywords: 401(k) plans, Employment-based benefits, Income replacement rate, Individual retirement accounts (IRAs), Pension plan contributions, Pension plan coverage, Pension plan design, Retirement income

JEL Classification: D31, D91, J26, J33

Suggested Citation

Holden, Sarah and VanDerhei, Jack, The Influence of Automatic Enrollment, Catch-Up, and Ira Contributions on 401(K) Accumulations at Retirement. EBRI Issue Brief, No. 283, July 2005. Available at SSRN: https://ssrn.com/abstract=770425

Sarah Holden (Contact Author)

Investment Company Institute ( email )

1401 H Street, NW
Research Department
Washington, DC 20005
United States
(202) 326-5915 (Phone)

Jack VanDerhei

Employee Benefit Research Institute (EBRI) ( email )

1100 13th Street, NW
Suite 878
Washington, DC 20005-4204
United States

HOME PAGE: http://www.ebri.org

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