In response to the ProPublica article, Senator Ron Wyden said he would revisit his 2016 proposal to stop people from being able to contribute to Roth IRAs once the balance reaches $5 million. “IRAs were designed to provide retirement security to middle-class families, not allow mega-millionaires and billionaires to avoid paying taxes,” Wyden said in a June 24 statement.
Overall, the average savings rate in 401(k)s for the second quarter was a record 9.3%, and 38% of plan participants hiked their savings rate over the past year, while 7% lowered it.
Employees with long tenure at their companies tend to have the highest retirement savings balances. The average balance for employees who had been in their company plan for 10 years breached the $400,000 level for the first time in 2021’s second quarter, rising to $402,700.
This article was provided by Bloomberg News.