NAPA Net - Polling Places 011316

What's Up With the (Lack of) Saver's Credi?

Reports indicate that only about one-in-eight of those currently eligible for the saver’s credit take advantage. What’s up with that?

Of all the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), none seems so widely appreciated on Capitol Hill as the so-called saver’s credit. While it was one of the more expensive components of the legislation, lawmakers on both sides of the aisle have praised its role in supporting the savings of low and middle-income workers. However, the take-up rate on the feature has consistently underperformed expectations.

This week, we'd like to know about your experience(s).

Question Title

* 1. Do you mention/promote the saver’s credit in your plan communications?

Yes

Sometimes

Depends

Other (please specify)

Question Title

* 2. Do your plan sponsor clients mention/promote the saver’s credit in your plan communications?

Yes

Sometimes

Depends

Other (please specify)

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* 3. Do you work with recordkeepers who mention/promote the saver’s credit in their communications?

Yes

Some

Other (please specify)

Question Title

* 4. Reports indicate that only about one-in-eight of those currently eligible for the saver’s credit take advantage. Why do you think that’s the case? Check all that apply.

Ignorance of the option

Embarrassed to file for the credit

They don’t file a 1040 (they might instead file 1040-EZ)

Something else (please specify)

Question Title

* 5. What do you think is the PRIMARY reason that only about one-in-eight of those currently eligible for the saver’s credit take advantage.

Ignorance of the option

Embarrassed to file for the credit

They don’t file a 1040 (they might instead file 1040-EZ)

Something else (please specify)

Question Title

* 6. What would you do to expand utilization of the saver's credit?

Nothing

Nothing - I don't think it should be expanded

Expand the income limits so that more could take advantage

Allow individuals to take the credit that file Form 1040-EZ

Beef up plan communications

Other (please specify)

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* 7. Any other comments on credits, saver's credit, expanding the use of the saver's credit, or the incredibly obvious reasons why most eligible individuals don't take (the) credit?

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* 8. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Other (please specify)

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* 9. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

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* 10. Suggestions for future survey questions?

Question Title

* 11. All responses are anonymous and confidential, of course - but if you'd like me to know who you are, or allow for a response, you can leave your email below...