401(k) plans are under attack, primarily due to the tax expenditure of this retirement benefit. It is estimated that $70.2 billion per year is lost revenue to the IRS each year and that over a five year period, the expenditure is $361 billion. The pension industry is clearly a target by the IRS. This retirement tax break follows closely behind the largest deduction; employer-paid health care and is just ahead of the mortgage interest deduction. Both are deductions that will never be included as income compared to retirement savings which are taxable in the future and the revenue is completely ignored.

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