The Employee Benefit Research Institute’s 2013 Retirement Confidence Survey recently found that 82 percent of workers participate in an employer-sponsored retirement plan, and an additional 8 percent have money in a plan they don’t contribute to. With so many people covered by 401(k)s, it’s clear that the impact of changes to their tax treatment could be substantial.

Protecting the tax incentives built into 401(k) plans is one of the biggest goals for The American Society of Pension Professionals and Actuaries (ASPPA). Unfortunately, tax changes that affect business owners could dissuade some employers from offering plans.

Brian Graff, executive director for ASPPA, spoke with AdvisorOne at the ASPPA 401(k) Summit on March 5 about the potential impact of changing those incentives. He referred to the Brookings Institution’s proposal that capped retirement savings deductions at 28 percent. Because business owners who offer their employers 401(k) plans are already taxed on contributions made to the plan and would be taxed again when they take a distribution, the proposal effectively calls for a double tax on retirement savings, he said. “No one likes taxes to begin with,” he said, so why would anyone want to pay twice?