More are using automatic plan features, fiduciary advisers and investment policy statements, PSCA finds.
“In terms of the legislative agenda going forward, there is definitely a discussion of a pivot to tax reform,” said Elisabeth Bell, tax counsel for Senator Ben Cardin; she also warned the potential for health care reform is far from settled.
The lack of understanding of Roth contributions, should Congress move to limit pre-tax savings, will cause significant confusion and potentially a significant drop in savings, a new analysis warns.
Large employers also tend to include more features in their retirement plans, a Transamerica study of employers finds.
Both on the health care and retirement planning fronts, House and Senate Republican leadership has big plans for what they would like to accomplish; how much they can get done is another question.
The idea seems to be to help employees establish better tax-diversity in their retirement holdings—as well as more controlled and rational ways of spending down their collected wealth once their working life ends, SHRM says.
More retirement plan sponsors are offering participants the opportunity to make Roth contributions and utilizing auto features to a degree of success, according to a report by T. Rowe Price.
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.
One ERISA industry advocate directly engaged with members of Congress says he expects more proposals to emerge from Republicans seeking to “significantly alter our retirement system,” most likely as a part of tax reform.
Authors of a new research report tell PLANSPONSOR they were surprised by just how well the Roth approach performed in the comparative analysis versus traditional IRAs.
Regardless of how tax policy changes under the new administration and Congress, it will remain crucial for retirement investors to consider the impact taxation will have on lifetime wealth.
While some Roth IRAs hold tens of millions of dollars, as of 2013 the median account value was $25,000.
Parents are failing to save additional money left over after their children become financially independent, according to a study by the Center for Retirement Research at Boston College.