PLAN DESIGN | Participants
Data & Research
Take It Past the Limit
Voluntary after-tax retirement savings accounts as a design feature.
Nearly Half of Vanguard Plans Use Automatic Enrollment
At year-end 2018, 66% of new plan entrants were enrolled via automatic enrollment.
Investment-Oriented
The Case for Roths
These 'delayed gratification' plans offer benefits worth waiting for
Intro
Right-Sizing
Ensuring that all clients are profitable.
Trendspotting
Data & Research
Data & Research
Compliance
Roth Conversions
Participants can more their entire balance or a portion of it
Roth Conversions Part of the Tax Diversification Tool Belt
Under IRS guidance, participants can select to convert their entire pre-tax balance or a portion of it; they often have a lot of questions about the right amount to convert, and when to make the move.
Retirement Taxes Can Derail DC Plan Participants’ Progress
“There are strategies of rolling some amount of traditional 401(k) dollars over into a Roth IRA that are potentially advantageous, especially if you have a couple of years where your income is lower,” observes Angie O’Leary, head of wealth planning at RBC Wealth Management. “Having tax diversification available down the line is really helpful in building that paycheck in retirement.”
Plans Offering Roth Accounts Have Doubled in the Past Decade
Sixty-three percent of retirement plans now offer them, the Plan Sponsor Council of America found.
Sponsors Making Deliberate Enhancements to Retirement Plans
Concerned that workers are not saving enough, employers are hoping to improve their financial security, Willis Towers Watson found in a survey.
Pass-Through Tax Reform Impact on Small Businesses May Be Mitigated via Roth
The American Retirement Association says that tax reform could be a disincentive for small businesses to offer retirement plans; however, as one reader shares, there are counter considerations having to do with Roth 401(k) options that could mitigate some of the concern.