Use of Tax Incentives for Retirement Saving in 2006

摘要

In 2006, more than half of all U.S. workers participated in some form of tax-favored retirement plan. This study, the fourth in a triennial series published by the Congressional Budget Office (CBO) on participation rates in and contributions to various plans, examines data for that year. The first in the series, Utilization of Tax Incentives for Retirement Saving (August 2003), presented data from 1997; the subsequent updates presented data for 2000 and 2003. This publication of the Congressional Budget Office (CBO) examines participation rates in and contributions to various plans in 2006, with some earlier data presented for comparison. Two features of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) also are analyzed: increases in contribution limits and an additional incentive created to encourage lower-income taxpayers to save for retirement that is known as the savers credit.