Broad Help Arrives for Pension Savings New York Times (02/17/02) Vol. 32, No. 2 p.22; Delafuente, Charles
New tax incentives are in effect, and have raised contribution limits for 401(k), 403 (b), and 457 retirement savings plans, which allow workers to reduce taxable income while building larger retirement nest eggs. However, some employees may be hindered by percent of salary limits placed on plans, but government officials contend that employers will be more generous with their contributions. Many are concerned that the new tax incentives will not be taken advantage of as employees worry about whether they will continue to have their job--placing money in the retirement account would render it inaccessible unless the participant were willing to pay a 10 percent early withdrawal penalty.