In the 30 years since 401(k) plans have gained acceptance, the 401(k) has become the most popular savings vehicle to help American workers achieve financial well-being in retirement. The current tax incentive is a critical component in a small-business owner's decision to set up and maintain a 401(k) plan. For a small-business owner, the ability to use tax savings on his or her contributions to generate all or part of the cash flow needed to pay contributions for other employees, and the deferral of income tax on investment earnings, are critical factors in the decision to adopt and maintain a 401(k) plan.
Will you preserve, or even enhance, the current tax incentives for retirement savings so workers will continue to have access to these proven workplace savings vehicles? If so, how would you plan to do so?