The Resource Do "catch-up limits" raise retirement saving? Evidence from a regression discontinuity design

Do "catch-up limits" raise retirement saving? Evidence from a regression discontinuity design

Label
Do "catch-up limits" raise retirement saving? Evidence from a regression discontinuity design
Title
Do "catch-up limits" raise retirement saving? Evidence from a regression discontinuity design
Creator
Subject
Language
eng
Summary
This article studies the effect of raising contribution limits on retirement saving by exploiting the "catch-up limit" provision, a rule which allows those over the age of 50 to make higher IRA and 401(k) contributions than those under 50. Using an age-related regression discontinuity design, the author finds that eligibility for catch-up limits leads to a large increase in total tax-deferred contributions for those without access to a 401(k) plan. This is driven by a 25 percent increase in average IRA contributions and a 21 percent increase in the likelihood of making an IRA contribution. I also find no significant effects on overall 401(k) contributions. The findings suggest that, contrary to the neoclassical life-cycle model, the response to eligibility for catch-up limits was not limited to constrained savers
Citation source
In: National tax journal. - Washington. - Vol. 71 (2018), no. 1 ; p. 121-154
http://library.link/vocab/creatorName
Lavecchia, A.M
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • retirement
  • savings
  • contribution
Label
Do "catch-up limits" raise retirement saving? Evidence from a regression discontinuity design
Instantiates
Publication
Label
Do "catch-up limits" raise retirement saving? Evidence from a regression discontinuity design
Publication

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