Many middle-income workers save for retirement through 401(k) plans. This study addresses the concern that low account balances of older workers may indicate that these vehicles are not sufficient to insure adequate retirement savings. In particular, the study shows that workers are not...

We investigate the validity of the argument by the financial services industry to “roll over your ‘old' 401(k) plan” because 401(k)-type plans have a limited number of investment options, while IRAs have a virtually unlimited number of options. We empirically analyze the diversification of...

Tax-preferenced retirement plans are designed to be vehicles for saving for retirement, not massive tax shelters for wealthy individuals. Because tax preferences for retirement savings cause a loss in federal tax revenue, and are one of the largest sources of tax expenditures, it has long been a...