Happy Friday, readers! Solving the retirement income challenge is so difficult because plan participants all have different longevity expectations, different beliefs about how they would like to live in retirement, and different conclusions about how to weigh longevity risk versus the risk of under-consumption. Collected below are some articles and research reports exploring the “decumulation challenge.” We hope you will share some of what you read with a client or colleague.
The SECURE Act is stalled in the U.S. Senate due in part to several lawmakers’ concerns that it does away with so-called “stretch IRAs,” but tax and inheritance experts say other effective tax mitigation strategies are available.
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As the population ages, experts believe more companies will offer this voluntary benefit. Advisers who are educated about long-term care insurance can increase awareness for retirement plan sponsors and participants.
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Though retirement plans can allow individuals to self-certify that they qualify for a penalty-free coronavirus-related distribution, should the IRS discover otherwise during a future audit, a participant can be subject to substantial penalties.