Employer-sponsored retirement plans and individual retirement accounts reached almost $40 trillion in total assets by the end of last year, even as a recovering economy faced some key pain points, according to new data released by the Investment Company Institute.
A recent court case demonstrates why owners of self-directed IRAs should be careful about their investment strategies and asset classes—and where they store any physical assets owned via their IRAs.
The bill would encourage retirement plan participation by giving people penalty-free access to funds in the event of an emergency.
The service is designed for small accounts with less than $5,000.
Educating participants about the importance of remaining committed to retirement savings and of the value of consolidating accounts is a good place to start, experts say.
The proposal creates a mandatory automatic enrollment individual retirement account program for employers that do not offer a retirement plan and employ at least five people.
Already, state-run plans, PEPs and moves to expand access to SIMPLE plans are making a difference, experts say.
The firms say it can replace what has traditionally been a tedious, manual process.
The legislation would require most employers that currently do not offer a retirement plan to offer one.
Retirement industry experts say automatic portability could be the solution to a pervasive problem.
The ratio of the combined 401(k) and IRA balance to the average 401(k) plan balance was 2.48.
Advisers share ideas for advisers to help small business owners and those who are self-employed save for retirement.
Experts see more value for participants to move their money from one 401(k) to another 401(k) than from a 401(k) to an individual retirement account.