401(k)

Roth IRA Estate Benefits Curtailed in Obama Budget

Posted on 03/6/2014 by |Senior Editor, Money Team | Comments

Bulletin Today | Money & SavingsBuried in the details of President Barack Obama’s 2015 budget are tax changes that could upend many people’s estate and retirement planning. The president is proposing significant changes to the Roth IRA, which has become a popular way for higher-income investors to leave money to heirs tax-free. “The Obama team put this out in an effort to simplify tax law when it comes to retirement accounts,” says Matt Curfman, a financial planner with Richmond Brothers Inc. in Jackson, Mich. “Thank …

Stock Gains Push 401(k)s to Record Highs

Posted on 02/18/2014 by |Senior Editor, Money Team | Comments

Bulletin Today | Money & SavingsLast year’s gangbuster stock market pushed 401(k) savings account balances to record highs, according to two major retirement account providers. Fidelity Investments says the average account balance at the end of last year reached $89,300, a 15.5 percent increase over the year before. For workers age 55 and older, balances averaged $165,200. Many workers roll over their 401(k) into an individual retirement account when they leave a job.  Adding up the balances of those who have both a 401(k) and …

Facebook, Others Scale Back 401(k)s

Posted on 02/14/2014 by |Senior Editor, Money Team | Comments

Money & SavingsIt’s bad enough that employers are doing away with traditional pensions and adopting 401(k)s that foist all the investing decisions onto workers, leaving them vulnerable to the vagaries of the market. Now, according to an analysis by Bloomberg, it appears that many big companies have gotten stingier with their 401(k) matching contributions and vesting schedules. These include IBM, Hewlett-Packard Co., Oracle Corp., Caesars Entertainment Corp., JP Morgan Chase & Co., Whole Foods Market Inc.  and Facebook. (Facebook, Bloomberg reports, gave …

AOL Reverses 401(k) Policy After Blowback

Posted on 02/10/2014 by |Money and Work | Comments

Money & SavingsLike boomers (and all workers, for that matter) don’t have enough to worry about when it comes to saving enough for retirement. Now actions by AOL’s Tim Armstrong may be setting a dangerous example for other companies to follow. First, the chief executive of AOL told employees Thursday he was changing the company’s 401(k) match to a year-end lump sum contribution rather than contributions throughout the year. Leave before Dec. 31, 2014 (voluntarily or involuntarily), and you lose out on …

More New Retirement Account Proposals

Posted on 02/5/2014 by |Washington Watch | Comments

Bulletin Today | PoliticsAmericans are way short in their retirement savings, and President Obama’s MyRA plan, which he unveiled last week, isn’t the only new proposal that aims to help with that problem. Sens. Susan Collins, R-Maine, and Bill Nelson, D-Fla., also offered a savings plan. Sen. Tom Harkin, D-Iowa, has one of his own, which follows a report he released last summer. Of these three proposals, Harkin’s is the most ambitious. His Universal, Secure and Adaptable (USA) Retirement Funds would create a …

MyRA — Thumbs Up or Thumbs Down?

Posted on 01/30/2014 by |Senior Editor, Money Team | Comments

Bulletin Today | Money & SavingsA day after President Barack Obama gave the go-ahead for the Treasury Department to create a “starter” savings account, experts are weighing whether it will be worthwhile or just another ignored investment tool. Critics note, for instance, that the so-called myRA will do little to overcome the huge shortfall in retirement savings among so many workers. The conservatively invested accounts, though they won’t lose money, won’t make much of a return, either. And the myRA is voluntary, so it’s unclear …