401(k) Plans and Retirement Savings: Issues for Congress

Summary

Over the past 25 years, defined contribution (DC) plans - including 401(k) plans - have become

the most prevalent form of employer-sponsored retirement plan in the United States. This report describes seven major policy issues with respect to defined contribution plans: 1) access to employer-sponsored retirement plans; 2) participation in employer-sponsored plans; 3) contribution rates; 4) investment choices; 5) fee disclosure; 6) leakage from retirement savings; and 7) converting retirement savings into income.