Economic Program | Idea Brief

Temporary Retirement Account Loss Deduction

by Ryan McConaghy and Mark Sagat

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One of the most devastating consequences of the financial crisis was the $1.6 trillion blow to individual retirement savings. While younger workers will have time to make their money back, new and near-retirees that have to live on their retirement funds have taken a virtually irrevocable hit to their long-term savings. To help cushion this blow, Third Way proposes a temporary retirement account loss deduction to help those who can’t wait for the market to recover before withdrawing from their retirement accounts.

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