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To: jiggyboy
Money you put into IRA's and 401K's is included.

No it's not. They look at after tax money left after consumption. Because IRA's and 401k's are pre-tax, they're not included.

They also don't count realized capital gains. They do deduct the capital gains taxes paid. The savings rate is a flawed statistic.

41 posted on 02/01/2006 8:09:37 AM PST by Toddsterpatriot (Why are protectionists so bad at math?)
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To: Toddsterpatriot
Yes it is.

"Contributions to IRA and 401(k) plans are counted toward the savings rate. So when the rate is negative it becomes very clear that a lot of people aren't participating in retirement plans."

The gains within the account are not counted however.

46 posted on 02/01/2006 8:32:28 AM PST by jiggyboy (Ten percent of poll respondents are either lying or insane)
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