A new report from Charles Schwab explores retirement plan participant investment activity within self-directed brokerage accounts; findings show self-directed accounts associated with advisers are better diversified.
Experts say sponsors should offer a Roth option so that participants can diversify their tax situation in retirement.
An Employee Benefit Research Institute analysis breaks down the number of 401(k) contributors who would be affected by a mandatory, partial Rothification proposal in tax reform.
Nominating a plan sponsor client is a great way to show appreciation and highlight important best practices that are improving outcomes for defined contribution and pension plan participants. Nominations for all types of retirement plans will be considered, so don’t delay.
Survey data covering some 1,000 plan participants shows Roth savings features remain poorly understood and underutilized.
Advisers say the elimination of tax incentives to save would deter participation and lower savings rates.
“The tax rules have always been designed to tie the interests of the employer and the employee together," one former EBSA official says. “So if you mess up the tax treatment and remove the incentive to offer a plan, small businesses aren’t going to go through the trouble, risk and expense of offering one at all.”
The study finds most people do not consider tax implications before deciding whether to defer into retirement plans' pre-tax or Roth accounts.
This is according to a survey by the Committee on Investment of Employee Benefit Assets Inc. of its members.
This is up from 8% in 2011.
Among employers offering Roth 401(k) savings programs, 40% now offer matching contributions.
The amount of employers offering Roth contributions in their 401(k) plans rose by 50%, according to a study by T. Rowe Price.
$7.4 trillion is currently invested in individual retirement accounts, the ICI reports.
Investing in a Roth versus a traditional IRA effectively raises the limit on what one can save, leading to materially greater wealth in retirement in the vast majority of tax scenarios.
A Transamerica survey found that 34% of Americans believe extending the Saver’s Credit to all filers regardless of income should be a priority for incoming President Donald J. Trump and the new Congress.
The new product automates the process of optimizing asset location to boost an investor's cumulative after-tax returns.
“Tax incentives for retirement savings are designed to help people build a nest egg,” says one high-ranking member of the Senate Finance Committee, “not a golden egg.”
According to ICI data, at year-end 2014, nearly a third of Roth IRA investors were younger than 40, compared with just 15% of traditional IRA investors.
Contrary to conventional advice, researchers found the largest economic benefits from Roth investments accrue to high-income investors.
No comments were received regarding the proposed regulations, so the IRS finalized the proposed regulations, with a one-year delay of the applicability date.