RBD/RMD for You; RBD/RMD for Me
The times they are a changin’ PSCA’s most recent annual survey shows that an increasing number of plan sponsors have adopted provisions designed to encourage participants to aggregate/consolidate retirement savings assets and to permit installment payouts that can be fashioned to meet income needs2: 46.3% of plans actively encourage participants... Read More >>
A Golden Age of Retirement … For Some
It’s 2020, Another Year Passes Without Entitlement Funding Corrections Some say, “A generation of Americans Is entering old age the least prepared in decades …Americans are reaching retirement age in worse financial shape than the prior generation, for the first time since Harry Truman was president.”1 Truman left office in 1953 just after I... Read More >>
What’s the Story? Part 3
The Retirement “Crisis”- What Me, Worry? Are those claiming a looming retirement “crisis” “worrywarts,1” -or those who worry needlessly, often without justifiable reasons; “a person who is inclined to worry unduly,” “one who worries excessively and needlessly,” “an inveterate worrier, one who frets unnecessarily?” Yes, certainly, since World War... Read More >>
Mystery for the Ages Solved! Is Interest on Plan Loans Double-Taxed?
We have the answer! It ranks right up there with “what’s out there beyond our solar system”?1 and “Who am I? Why am I here?” Mechanics of Taking a Loan, Making Loan Payments All monies in an individual account retirement savings plan are tracked at least two ways – by the source of the monies and by the investment allocation. So, whenever money... Read More >>
Easier to Take Hardship Withdrawals
(Not so) easy to say no1 PSCA’s snapshot survey regarding hardship withdrawals pretty much confirms the data we regularly collect in our annual survey – 91.6% of survey responses confirm their plans offer liquidity in the form of hardship withdrawals and about 90% of those plans allow distributions for: The purchase of a primary residence; To... Read More >>
Retirement is Far Off!
The Ants & The Grasshopper1 Once upon a time, the grasshopper danced and sang: “… I see no reason to worry and work.” He sang a different tune once winter arrived: “I’ve been a fool, all (a)long. Now I’m singing a different song. …” Someday, when America finally decides how best to deliver financial education to children and adults, young and... Read More >>
Is it Time Yet?
Retire the 401(k)! Retire the 401(k)? Ten years ago, this was the October 9, 2009 Time Magazine cover.1 The author asserted that America would be better off if we “retired” the 401(k). He favored re-introducing defined benefit pension plans. Some continue to favor such actions.2 One of my predecessors, David Wray, evaluated the article. He... Read More >>
It’s Not Too Late - But, Don’t Wait!
Some things for plan sponsors to consider before you “give thanks,” light the candles on the menorah, celebrate the Solstice, Nativity, Kwanzaa, or sing Auld Lang Syne. Health Savings Account (HSA) Capable Health Option – Add December 1st Not January 1st Are you adding your first HSA-capable health option in 2020? If so, why not add it effective... Read More >>
Perquisites Behaving Badly?
In a recent Colorado Sun article, University of Oregon associate professor of law Elizabeth C. Tippett asserts1: Companies offer all sorts of benefits and extras to attract the most favored workers, from health care and stock options to free food. But all those perks come at a price: your freedom. Labor historians call these perks “welfare... Read More >>
It’s My Money and I Need it Now!
On Demand Pay Apps Address Financial Illness Symptoms – Are They The Newest “Attractive Nuisance?”1 Workers living payday-to-payday? Cash-strapped? Money problems? Unbanked, underbanked? Unexpected expenses? Damaged credit? Income shocks? Unable to cover normal, periodic, expected, everyday expenses? Do your workers need cash now? Are you getting... Read More >>