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RBD/RMD for You; RBD/RMD for Me

By Jack Towarnicky

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:

A Golden Age of Retirement … For Some

By Jack Towarnicky

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. Read More >>

What’s the Story? Part 3

By Jack Towarnicky

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 II, there have been tens of millions of American workers who reached retirement age financially unprepared. Read More >>

Mystery for the Ages Solved! Is Interest on Plan Loans Double-Taxed?

By Jack Towarnicky

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. Read More >>

Easier to Take Hardship Withdrawals

By Jack Towarnicky

(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 prevent eviction or foreclosure; 
  • For post-secondary educational expenses; and 
  • For medical expenses and funeral expenses.

Retirement is Far Off!

By Jack Towarnicky

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. Read More >>

Is it Time Yet?

By Jack Towarnicky

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). Read More >>

It’s Not Too Late - But, Don’t Wait!

By Jack Towarnicky

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 December 1st, 2019? Adding a new option will qualify as a health status change, so workers can change their cafeteria plan election. Read More >>

Perquisites Behaving Badly?

By Jack Towarnicky

In a recent Colorado Sun article, University of Oregon associate professor of law Elizabeth C. Tippett asserts1:

  1. 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. Read More >>

It’s My Money and I Need it Now!

By Jack Towarnicky

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 demands to add an on-demand pay app? Are you getting solicitations from “financial wellness” providers who argue such programs are dramatically less expensive compared to payday loans and other forms of high-cost credit – with fees of perhaps $6 a month, plus perhaps $5 per payday per use, plus interest rates of 6% to 36%. Read More >>

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