Since I started investing in IRAs long before the Roth came along, and my income does not allow me to benefit from a Roth, it is not an option for me or for many like me.
Secondly, employer-sponsored pension plans have a very favored tax treatment - ie no federal taxes. In 2004, the estimated “loss” to the treasury from such plans, according to the GAO, was 95 billion. Name me one employer-sponsored type of pension plan where taxes were paid up front.
As far as the “separation” tax - well, don’t get a divorce. Under the Fair Tax, that wouldn’t even be an issue, so I don’t know what your point is on that.
Which is what drives everyone bats^^t with the current system. There are so many rules for retirement plans it is unconscionable. Roth, traditional, 401(k), 403(b), defined contribution, defined benefit, limitations on contributions, top heavy and highly compensated rules and on and on. Because of all these regulations most retirement plans have limited investment choices because they have to be offered as "products" in order to comply with the IRS.
And who pays for all this? It comes directly from your investment returns. If you have negative returns you pay anyway.
Imagine a world where you get the same effect - tax deferral - only here it is TAX FREE. You don't have to pay providers for the service, you just have to pay some mutual fund company, or a wide array of mutual fund companies, a management fee for your investment.