U.S. Private Saving and the Tax Treatment of Ira/401(K)S: A Re-Examination Using Household Survey Data

30 Pages Posted: 15 Feb 2006

See all articles by Alun H. Thomas

Alun H. Thomas

International Monetary Fund (IMF) - European Department

Christopher Towe

affiliation not provided to SSRN

Date Written: August 1996

Abstract

The effect of the tax treatment of IRA/401(k)s on U.S. personal saving is examined using household survey data from the Survey of Consumer Finances. The results suggest that the tax treatment of IRA/401(k)s encouraged households to increase the share of assets held in the form of pension savings, at the expense of saving in the form of housing equity. Some evidence also was found to suggest that the tax treatment of pension savings similarly affected the flow of saving. In particular, the data appeared to reject the hypothesis that the tax treatment of IRA/401(k)s increased total personal saving.

JEL Classification: E21, H24

Suggested Citation

Thomas, Alun and Towe, Christopher, U.S. Private Saving and the Tax Treatment of Ira/401(K)S: A Re-Examination Using Household Survey Data (August 1996). IMF Working Paper No. 96/87, Available at SSRN: https://ssrn.com/abstract=882983

Alun Thomas (Contact Author)

International Monetary Fund (IMF) - European Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Christopher Towe

affiliation not provided to SSRN

No Address Available

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
44
Abstract Views
759
PlumX Metrics