Who Says You Need Tax Breaks for Retirement Saving?

In April alarm bells went off—briefly—in the world of people who keep a close watch on 401(k) retirement plans. According to the Wall Street Journal, Gary Cohn, director of the White House National Economic Council, discussed with senators whether to drop the tax break U.S. savers can get when putting money into a workplace retirement plan, while letting earnings and withdrawals be tax-free. The Trump administration later said it wasn’t planning to change the 401(k) as it seeks ways to fund the cut in tax rates it’s promised.

The discussion was a reminder that retirement plans are very much creatures of the U.S. tax code. Which makes now a good time to ask: After a certain point, are tax incentives really the best way to get people to save more for retirement? Designing retirement plans that are easy for more people to use could be just as powerful.