Research On Implementation Of Endowment Insurance Of Imcome Tax-Deferred Pension Of China

In2000, China has already been an aging society, though it’s a developing country. But compared with developed countries, China’s population characterizes "old but poor". Considering this, China adopted a multi-level insurance structure, which based on social basic endowment insurance, corporation annuals and individual donations. The benefits of social basic endowment insurance is still low, and a huge finical gap emerged of social insurance fund in recent years, what’s worse, corporation annuals and individual donations develops much slower. Facing the growing pressure of old ages, China needs to develop corporation annuals and individual donations more efficiently, to provide the olds a more superior insurance system and a higher level of benefits. Some developed countries in Europe and America will introduce some tax advantages policy to promote the development of society insurance system. In China’s society insurance system, only the total part related to social basic endowment insurance, and some proportion of corporation annual, which donates by corporation, could entitle to a tax advantages, nothing of individual donations could enjoy this free. By learning research the401(k) plan experience, China should adopt Income Tax-deferred Pension, and merges it into corporation annual and individual donations basing on the situation of current tax system. This will not only push corporation annual and strength the awareness of pension, complete the multi-level society insurance, but also prompt consume, generate a positive influence on capital market and innovation.This paper is organized as follows:Chapter1is introduction.In this section, this paper expounds the background, purpose, and meanings of this article. There is also a summary of the study of Income Tax-deferred Pension world widely, and the innovations and lacking in this discussion.Chapter2surveys the history and the situation of China’s pension insurance, investigates the challenge of old population to multi-level society insurance. This section brings forward that rational tax advantages will speed up the development of complementary pension, with the discussion on the current tax system, based on the low speed of development of complementary pension.Chapter3discusses the details of adopting income tax-deferred pension. First, there is a summary of income tax-deferred pension and the advantage of tax-deferred. Second partition is the necessary of income tax-deferred pension in china. And the last partition is the probability of adopting it.Chapter4is the study of401(k) plan. This chapter begins with the introduction of401(k) plan and its development, followed which is the detail of its operation. At the last of this chapter, this paper lists some revelation of401(k) plan’s success for China’s complementary pension.Chapter5is some advices of income tax-deferred pension. We put forward some constructive suggestions for the development of tax-deferred pension in China, from the view of the choice of tax-deferred policy and the management of pension funds.