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No. of Recommendations: 2
It is not a very reasonable fear. I set up a 401(k) for my business. It isn't that hard and you get a whopping tax deduction.

Can you explain in more detail the sort of tax breaks your company gets for setting up a 401K, beyond the impact of your contributions?

Yes, we are all too familiar with the rules about "highly compensated individuals." You don't have to be all that highly compensated to be hit by the limits, just work with a bunch of clueless people who don't prepare for their retirement. This happens with relative frequency when you are part of a manufacturing industry with a retail component with lots of part time workers selling what the company makes.

Any limits based purely on income alone is not geographically unbiased, and should have a COL adjustment. One can chose where they live in retirement, but not so much while working. And if the income level is not indexed for inflation, what is today's attack on those with higher income will be tomorrows attack on the middle class. This will make it harder for those entering the workforce now when it comes time for them to retire. Wrong direction for a generation that has so much stacked up against them. The gov't should be creating more opportunities to save, to become responsible for one's own future and not depend on things like SS, rather than reducing them, which is what Obama's 2015 budget is doing over and over and over again.

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