Making Retirement Saving Even More Valuable by Adding Automatic Emergency Savings

Automatic enrollment for retirement saving is both effective and popular among all income, gender and ethnic groups. It has increased participation, helped people to both start saving earlier and to make appropriate investment choices.This mechanism would be even more useful, especially for younger workers and those with low-to-moderate incomes if retirement savings plans also allowed employees to save for unexpected expenses. Recent research by the US Financial Diaries Project, which looks at the actual income flows of low-to-moderate income consumers …

Obama Budget Would Drastically Alter IRA Rules

President Barack Obama calls them loopholes, although investors consider them playing by the rules. Yet under the president’s newly released budget, some of the tax strategies used by high-income earners to contribute to Roth IRAs or maximize the tax benefits on inherited IRAs would go away. Right now, to make a full or partial contribution to a tax-friendly Roth IRA, income must be under $131,000 for an individual and $193,000 for a married couple. High earners have gotten around this by …

Add Adjusting Your 401(k) to End-of-Summer Plans

Now that we’re past the midyear of 2014, it’s a great time to review your retirement savings plan to make sure you’re on track. If you’re not contributing enough or haven’t rebalanced your portfolio since George W. Bush was in office, you have the remainder of the year to make some adjustments. You probably already know that you can sock away as much as $23,000, which includes $5,500 in catch-up contributions for people 50-plus, in your 401(k) plan. However, if you’re using …

Is Your 401(k) a Winner? Check This Ranking

ConocoPhillips Co. has the best 401(k) plan for workers, while Facebook Inc., Amazon.com Inc. and Whole Foods Market Inc. offer some of the worst, according to a Bloomberg News survey of the 250 largest public companies in the country. In fact, ConocoPhillips’ plan is so generous – contributing 9 percent of workers’ pay if workers kick in 1 percent – that after 35 years an employee can end up a multimillionaire, Bloomberg said. According to the Houston-based oil and gas producer’s own …

It’s Tax Day! Don’t Forget to File

If you’re rushing to get your taxes done before today’s midnight deadline, take some comfort that you’re not alone. The Internal Revenue Service expects to receive about 35 million returns in the last week or so before the filing deadline. At this point, the time for most moves to lessen your tax bite is long over, although even on this deadline day you may have one more opportunity. It’s still possible to make a 2013 contribution to a deductible individual retirement …

Should Older Workers Have to Pay More for Their Pensions?

You’ve undoubtedly heard the advice again and again: If you are close to retirement age, you should max out your contributions to employer-sponsored retirement plans. But requiring older employees to contribute more than younger ones to a pension fund is another matter entirely, a federal appeals court in Baltimore held last week. “Certain older Baltimore County employees were forced to pay more for their pensions than younger co-workers,” David Lopez, the general counsel of the Equal Employment Opportunity Commission, said …