Top five US executives hoard $9bn tax-free for retirement as workers face limits

At many of these companies a sizeable percentage of workers, in some cases as much as half, had no money in their 401(k)s - report

The top five executives at the US's largest companies have amassed close to $9bn in tax-free retirement saving accounts while many of their employees have struggled to set aside any funds for retirement, according to a new report released on Thursday.

The report, A Tale of Two Retirements, from the Institute for Policy Studies and Jobs With Justice found the top five executives at S&P 500 firms held a combined $8.9bn in special tax-deferred accounts at the end of 2021. Income taxes will be due on this compensation when they withdraw the funds, but in the meantime, they benefit from the tax-free compounding of investment returns.