policyengine-us-data/policyengine_us_data/datasets/cps/imputation_parameters.yaml at 1cee9739696065c99d4e557fed0cb2d757d85762 · PolicyEngine/policyengine-us-data · GitHub

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# Personal income variable imputation parameters used
# in the cps.py add_personal_income_variables function.

# SOI 2020 data
taxable_interest_fraction: 0.680

# SOI 2018 data
qualified_dividend_fraction: 0.448

# SOI 2015 data (Table 1.4: taxable / total pension income)
taxable_pension_fraction: 0.590
taxable_401k_distribution_fraction: 1.0
taxable_403b_distribution_fraction: 1.0
taxable_ira_distribution_fraction: 1.0
taxable_sep_distribution_fraction: 1.0

# SOI 2012 data
long_term_capgain_fraction: 0.880

# Retirement contribution allocation fractions.
# Used to split CPS RETCB_VAL (a single bundled total) into
# account-type-specific variables.
#
# Self-employed pension share of retirement contributions.
# Self-employed pension: $30.13B (IRS SOI Publication 1304, Table 1.4,
# TY 2023, "Payments to a Keogh plan")
# Combined employee DC + IRA + self-employed pension: $655.53B
# Share: $30.13B / $655.53B = 4.6%
# https://www.irs.gov/statistics/soi-tax-stats-individual-statistical-tables-by-size-of-adjusted-gross-income
se_pension_share_of_retirement_contributions: 0.046

# DC vs IRA share of remaining non-SE retirement contributions.
# Employee DC: $567.9B (BEA/FRED Y351RC1A027NBEA minus W351RC0A144NBEA)
# Total IRA: $57.5B (IRS SOI Tables 5 & 6, TY 2022)
# Combined: $625.4B
# https://fred.stlouisfed.org/series/Y351RC1A027NBEA
# https://www.irs.gov/statistics/soi-tax-stats-accumulation-and-distribution-of-individual-retirement-arrangements
dc_share_of_retirement_contributions: 0.908
ira_share_of_retirement_contributions: 0.092

# Roth share of DC (401k/403b) contributions.
# Vanguard How America Saves 2024: 18% of participants elect Roth.
# PSCA 67th Annual Survey: 21% of participants make Roth contributions.
# Estimated dollar share ~15% (Roth participants contribute slightly
# less on average).
# https://corporate.vanguard.com/content/dam/corp/research/pdf/how_america_saves_report_2024.pdf
# https://www.psca.org/news/psca-news/2024/12/401k-savings-and-participation-rates-rise/
roth_share_of_dc_contributions: 0.15

# Traditional vs Roth share of IRA contributions.
# IRS SOI IRA Accumulation Tables 5 & 6 (TY 2022):
# Traditional: $22.5B (4.99M contributors), Roth: $35.0B (10.04M)
# Traditional share: 22.5 / 57.5 = 39.2%
# https://www.irs.gov/statistics/soi-tax-stats-accumulation-and-distribution-of-individual-retirement-arrangements
traditional_share_of_ira_contributions: 0.392

# SE pension statutory parameters retained for retirement-limit utilities.
# These are not used to reduce desired source contribution data.
# SEP-IRA / Solo 401(k) contributions are limited to the lesser of
# a percentage of net SE earnings and a dollar limit.
# The 25% rate is technically ~20% for sole proprietors after the
# deduction-for-half-of-SE-tax adjustment, but 25% is the standard
# rate for corporate plans and a reasonable approximation given that
# CPS SEMP_VAL is gross SE income.
# https://www.irs.gov/retirement-plans/one-participant-401k-plans
se_pension_contribution_rate: 0.25
se_pension_contribution_dollar_limit:
  2020: 57000
  2021: 58000
  2022: 61000
  2023: 66000
  2024: 69000
  2025: 70000