Is your 401(k) in danger? A group of pension professionals thinks so.
The American Society of Pension Professionals and Actuaries has launched a media campaign with the hopes of educating employers and employees alike on the possibility of the government changing the tax benefits of retirement savings accounts. If that happens, employees could start saving less and smaller employers may actually consider doing away with their 401(k) plan, which is obviously a worry for the organization.
The “Save My 401(k)” campaign points to tax reform to reduce the national deficit as the reason for the possible changes. Last time Congressmade a change to the tax code, they cut 401(k) contributions by more than 70%, the campaign says. A full-scale tax reform could cut or limit specific tax breaks as a way of lowering overall tax rates. And with President Obama’s plan to raise taxes for corporations and the wealthy, the status of the 401(k) could certainly be in danger.
Right now the campaign is urging people to write Congress.In addition to the campaign website there’s a Facebook and Twitter account, as well as an online video game that can educate your employees on what could happen.