[SoCal Pubbie]

Help me to understand this, or at least what Ghilarducci is proposing.

First she says all funds already in a 401K are grandfathered in and retain their tax exemption, right? So nothing changes there.

Second, five percent of income will get put into the government retirement plan. So someone making $100,000 will have $5,000 withheld. Then she says the Feds will give that person $600 toward the account. Now does that mean they pay $5,000 and get to keep only $600, or does that mean they have $5,600 at the end of the year? That's a big difference!

Please explain to me how this is supposed to work. If you want also add other scenarios proposed by pols or other “economists.”

Thanks.

[Bloody Sam Roberts]

So someone making $100,000 will have $5,000 withheld. Then she says the Feds will give that person $600 toward the account.

The way I read it...it is a slightly better than 1 to 5 match. the 5k withholding is matched up to about 10%. Pretty bad compared to current 401k matches...at least for my company.

But, you can bet it will be a lot more complicated and it will all be explained in a 4000 page document that is currently being written. Probably by Van Jones.