In such a scenario, employers might discontinue 401K matches, but I seriously doubt that employees would see their incomes rise, and if they do, it would not be an equivalent amount since the match has tax advantages for the employer while the wages would not.
Employers will discontinue 401k matches and employees will see their income taxes rise because it will be figured into their ordinary income.
In such a scenario, employers might discontinue 401K matches, but I seriously doubt that employees would see their incomes rise, and if they do, it would not be an equivalent amount since the match has tax advantages for the employer while the wages would not.
If they were smart, then they would make 401k contributions MANDITORY. Keeping the management companies in business. They may do away with the tax deductability of the match - political suicide, but none the less. Some type of benefit would have to be put into place for matches. That way every worker is contributing to his or her retirement account and it is being managed by someone other than the govt.