The next few days, if not months, will no doubt see a great dealof debate about the details of President Obama’s tax code andretirement reforms. But Americans appear univocal on at least onething when it comes to retirement: tax incentives that promoteretirement savings work and need to be left alone.

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This is according to a survey by the Investment CompanyInstitute which found that a majority of U.S. households areopposed to reducing or removing tax incentives that encourageputting money into defined contribution plans. The study found thisto be true of households both with and without existing retirementplans.

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The findings were in keeping with ICI’s stance on the benefitsof retirement tax incentives – and the negative impact that Obama’sproposed caps on 401(k) contributions and other limitson tax deferrals would have.

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“All workers, regardless of income, benefit from the current taxtreatment for retirement plan saving, and we urge policymakers, asthey consider legislation in this area, not to curtail theseimportant incentives to save for retirement,” ICI President and CEOPaul Schott Stevens said in a statement.

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The ICI surveyed more than 3,000 Americans for the report,titled “American Views on Defined Contribution Plan Saving.”

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The survey found that:

  • Eighty-eight percent of households disagreed with the notionthat the government should take away the tax advantages of DCaccounts, and 90 percent disagreed with reducing the amount thatindividuals can contribute to DC accounts.

  • Even among households not owning DCaccounts or individual retirement accounts, more than eight in 10rejected the idea of taking away or reducing the current taxtreatment of DC accounts.
  • Eight in 10 households with DC accounts said the tax treatmentof their retirement plans is a big incentive to contribute.

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