Filed Under:Life Insurance, Life Planning Strategies

DC, IRA owners have higher incomes, tax rates

The median marginal tax rate for households without DC plans or IRAs is 15 percent, compared to 25 percent for households with those savings vehicles.
The median marginal tax rate for households without DC plans or IRAs is 15 percent, compared to 25 percent for households with those savings vehicles.

Households without employer-sponsored defined contribution (DC) pension plans or individual retirement accounts (IRA) have lower incomes and tax rates than households with those plans. The households are also likely to have limited additional resources to draw upon in retirement, according to General Accounting Office (GAO) estimates.

The GAO research shows the median adjusted gross income for households without DC plans or IRAs is $32,000, compared to $75,000 for those that do have them. The median marginal tax rate for households without DC plans or IRAs is 15 percent, compared to 25 percent for households with those savings vehicles.

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Nichole Morford

Nichole Morford
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