Sponsors of 401(k) plans have been permitted to amend their plans to accept Roth (after-tax) contributions since 2006. Plan participants can benefit from having their Roth contributions grow with tax-free earnings, and their contributions can be distributed to them at retirement with no future income tax liability. Unlike a Roth IRA, participation has no income [...]
In an endeavor as critical as managing your investments, it is prudent to handle some situations with the help of a competent professional advisor. Many individual investors simply do not have the time, patience, or persistence to deal effectively with their investments over the long term. Many investors have the motivation to put in the [...]
DOL UPDATE New Participant Fee Disclosure Timing Relief Under the DOL’s fee transparency regulations, plan administrators must provide a disclosure of plan and investment information, including an investment comparative chart, to eligible employees and beneficiaries once every 12 months. The original disclosures were due by August 30, 2012, and each annual disclosure thereafter would be [...]
More than 75% of those contributing to an employer-sponsored retirement savings plan receive matching contributions, and more than three-fourths of those participants contribute enough to receive the full match, according to TIAA-CREF’s Perfect Match Survey. But, only 72% of women and 64% of workers earning less than $35,000 annually receive the entire match. Many people [...]
Being part of the college planning process can be very educational for children, as it presents them with valuable financial lessons for the future. Children can earn money, learn about sources of financial aid, research potential colleges, and take other steps that may relieve their parents of some of the responsibility of college planning and [...]
President’s 2016 Budget Proposal The president released his fiscal year 2016 budget proposal during first quarter. Unlike other retirement plan-related proposals introduced this year, the president’s budget proposal appears to combine retirement savings provisions with tax reform initiatives that would reduce the revenue impact of retirement savings. Retirement savings tax incentives are the second biggest [...]
Having an effective employee engagement strategy is the most important component of a successful retirement plan, according to a recent white paper. The impacts of plan design, plan management, and investment solutions are all reduced without one. Engaging employees involves three major factors. First, plan sponsors need to understand that different employee groups, based on [...]
As prices of new cars continue to climb, more and more people are considering leasing as a viable financing option. Although leasing is generally more expensive than financing, there are certain advantages to leasing a vehicle. A lease will typically result in a lower initial cash outlay and lower monthly payments. But at the end [...]
Workers between the ages of 37 and 50 are poorly prepared for retirement, according to the 15th Annual Transamerica Retirement Survey of Workers. Only 24% of Generation X (those born between 1965 and 1978) reported that their greatest financial priority is saving for retirement. One-third of survey respondents expect a decline in their standard of [...]
As you plan for the year ahead, is an investment checkup leading your list of resolutions? Taking time for a detailed financial review -- including retirement planning, college savings, and your tax situation -- may help you progress toward your long-term goals. Consider the following items as part of your checkup: Capitalize on tax reductions. [...]
