Putnam CEO on Tax Reform’s Impact on Retirement Savings

The video discusses the Pension Protection Act of 2006, highlighting its benefits like automatic enrollment and target date funds, which help individuals save for retirement. It also covers potential government tax reforms that could shift 401K contributions from pretax to post-tax, raising concerns about reduced contributions. The video explains the differences between traditional and Roth 401K plans, emphasizing the tax implications and potential impact on savings. Lastly, it addresses how Congress evaluates retirement savings over a 10-year period, often underestimating the long-term benefits and costs to the treasury.

Explain the difference between traditional 401K and Roth 401K contributions.

What are the long-term implications of tax reform on retirement savings as discussed in the text?