Tax Reform is Helping Boost Nevadans’ Retirement Savings
In more ways than one, tax reform continues to give hardworking Americans a much-needed lift.
From companies distributing $1,000 bonuses to local job creators announcing higher starting wages, there’s plenty for us to clap about when it comes to the Tax Cuts and Jobs Act.
But a little less publicized – yet just as important – benefit born out of tax reform is that more Americans are seeing an increase in their retirement savings.
It has been just three months since the Tax Cuts and Jobs Act became law, and more than 400 companies, including many that employ thousands of Nevadans, have made pledges involving pay raises, paid days off, or enhanced employee benefits like parental leave as a direct result of the new law.
Of those companies, several are also choosing to use their savings from tax reform to reinvest in their workers by significantly increasing contributions to employees’ 401(k) retirement accounts.
For example, in response to the Tax Cuts and Jobs Act becoming law, Visa is increasing its 401(k) matching program up to 5 percent of an employee’s base salary. Other businesses that made similar announcements to the credit card company include insurance giants Nationwide Mutual Insurance Co. and Aflac Inc., the latter of which is boosting the company’s 401(k) match from 50 percent to 100 percent on the first 4 percent of employee contribution and doling out $500 to every worker’s 401(k) plan.
More cash in Americans’ retirement accounts could not come at a better time as Nevadans continue to bounce back from the Great Recession. During those tough years it was not uncommon for families to suspend contributions or tap into their 401(k) plans to make ends meet. Moreover, many Americans were laid off, therefore losing out on the opportunity for their employer to match any funds at all.