Average individual 401(k), 403(b) and IRA account balances increased year-over-year, according to the latest cut of data from Fidelity’s book of retirement business, but the average dipped slightly from Q4 2017, reflecting market volatility and the fact that new small-balance savers entered the fold.
That is followed by not saving for an emergency, and taking on too much credit card and too much student loan debt.
Fifty-one percent are not actively contributing to a 401(k) plan, Edward Jones found in a survey.
Many participants do not know about the credit, the Transamerica Center for Retirement Studies found.
They like the tax advantages, investment opportunities and investor control that 401(k)s and other DC plans offer them, ICI finds.
Participants in 401(k), 403(b) or other defined contribution (DC) plans can compare administration and individual mutual fund fees to fees in an individual retirement account (IRA).
After being educated about the option, only 13% of employees said they would likely opt out of an auto-IRA run by their state.
A J.P. Morgan analysis points out one relatively unknown strategy that may help investors respond to big changes in the tax treatment of their savings: Proactive traditional-to-Roth conversions during lower income retirement years.
Research findings show Social Security benefits and retirement income from employer-sponsored retirement plans, annuities, and IRAs together provide substantial income for U.S. retirees.
In the presence of “a variety of mitigating circumstances,” taxpayers can now qualify for a waiver of the 60-day time limit generally placed on tax-free plan-to-plan or individual retirement account rollovers.
The Retirement Savings Lost and Found Act aims at simplifying the process of first locating and then consolidating abandoned defined contribution plan accounts.
A new service from Millennium Trust helps employees search for and process old retirement account dollars that may have been rolled into an IRA.