Effects of Public Policies on the Disposition of Pre-retirement Lump-Sum Distributions : Rational and Behavioral Influences

摘要: A variety of public policies aim to influence workers’ disposition preretirement lump-sum distributions (LSDs) from pensions. We use the implementation several policy changes as natural experiments test for rational and behavioral motives saving behavior. Using data HRS CPS in 1980s 1990s, we find that higher tax rates on cash-outs increase rollovers. Controlling overall effective rate, structuring a “penalty” or adding withholding taxes cashouts significantly increases Allowing employers unilaterally cash out balances departing employees who do not make their own choice reduces effects but boosts impact taxes. These results suggest both factors choices, relating pre-retirement outs can interact important ways, government has levers at its disposal behavior beyond penalties.