TY  - UNPD
A1  - Horneff, Vanya
A1  - Maurer, Raimond
A1  - Mitchell, Olivia S.
T1  - Do required minimum distribution 401(k) rules matter, and for whom? Insights from a lifecylce model
T2  - LawFin working paper ; No. 17
N2  - Tax-qualified vehicles helped U.S. private-sector workers accumulate $25Tr in retirement assets. An often-overlooked important institutional feature shaping decumulations from these retirement plans is the “Required Minimum Distribution” (RMD) regulation, requiring retirees to withdraw a minimum fraction from their retirement accounts or pay excise taxes on withdrawal shortfalls. Our calibrated lifecycle model measures the impact of RMD rules on financial behavior of heterogeneous households during their worklives and retirement. We show that proposed reforms to delay or eliminate the RMD rules should have little effects on consumption profiles but more impact on withdrawals and tax payments for households with bequest motives.
T3  - LawFin Working Paper - 17 
KW  - life cycle saving
KW  - household finance
KW  - 401(k) plan
KW  - retirement
KW  - tax policy
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/61657
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-616576
IS  - February 2021
EP  - 38
PB  - Center for Advanced Studies on the Foundations of Law and Finance, House of Finance, Goethe University
CY  - Frankfurt am Main
ER  -