Lawmakers should beware that the sticker price for tax deferral overstates its true costs.
The vast majority of 401(k) plan participants and their beneficiaries are on their own to make savings last throughout the remainder of their lives.
While the president’s budget is best understood as an expression of one party’s agenda, the document does include a variety of new proposals.
The law will require employers to either offer an employer-sponsored retirement plan or automatically enroll their employees into the new Secure Choice program.
Congress acted to make target-date funds the default investment in the retirement plan for federal employees.
One of the challenges that defined contribution plan participants face is how to turn their savings into income that will last through the end of their lives.
By offering auto-enrollment, higher default contribution rates, and/or auto-escalation, employers can help their employees save more and better prepare for retirement.