Tag

401k

All articles tagged with #401k

business12 days ago•14 min saved

SpaceX Joins Broad Index Funds, With OpenAI and Anthropic Soon to Follow

SpaceX’s ultra-thin public float now meets revised index rules, allowing it to be added to major benchmarks behind funds like VTI and prompting automatic, phased buying in millions of 401(k) plans. The same mechanism is set to pull OpenAI and Anthropic into the indexes next, while the S&P 500 did not change its rules. For savers, the impact is gradual exposure through passive funds rather than a one-shot jump, as weight depends on float and liquidity rather than a company’s current profitability or price.

via moneywise.com|

#401k #business #float

personal-finance12 days ago•3 min saved

401(k) Rollovers Dominate IRA Growth, Not Direct Contributions

IRAs hold about $19.2 trillion while 401(k)s hold $10.1 trillion, and most IRA assets come from rollovers of workplace plans rather than new contributions (2023 saw $682B rolled into IRAs vs $89B in direct contributions). Aging baby boomers and the desire to consolidate accounts are driving rollover growth, with Cerulli projecting hundreds of billions more in rollover money in the coming years. While rollovers can simplify finances and access a wider range of investments, they forego some 401(k) protections and aren’t always the best move for every saver; keeping some funds in a 401(k) can still be prudent.

via CNBC|

#401k #contributions #ira

personal-finance12 days ago•22 min saved

Americans set $1.46M retirement target, but fear it won't last

Northwestern Mutual's 2026 Planning & Progress Study shows Americans now peg retirement at $1.46 million (up $200k from last year) even as 46% doubt they'd be financially ready and 48% fear their savings could run out. With longer lifespans—some expect to reach 100—and many planning to retire at 65, experts urge focusing on a sustainable plan rather than a single target. They cite rules like 25x annual spending, the $1,000-a-month rule, and the 4% rule as starting points, and offer strategies: max 401(k) contributions (2026 limit: $24,500), pay down debt, build an emergency fund, plan for healthcare, and consider delaying Social Security to 70 for bigger benefits.

via Yahoo Finance|

#401k #personal-finance #planning

personal-finance23 days ago•38 min saved

Vanguard 2026 data shows widening retirement gap

Fortune’s How America Saves 2026 reveals a troubling retirement picture: the average 401(k) balance rose to a record $167,970 in 2025, yet the median sits at just $44,115, highlighting a sharp inequality where a small group of high balances pulls the average up while most Americans struggle to save enough. With rising hardship withdrawals, the retirement shortfall persists, and Vanguard attributes much of the outcome to plan design and automatic enrollment features rather than individual effort, underscoring that millions remain outside a robust retirement system.

via Fortune|

#401k #inequality #personal-finance

markets26 days ago•319 min saved

SpaceX IPO Could Herd Its Way Into Your 401(k) via Indexes

SpaceX’s record-breaking IPO last week could land the company in major stock indices soon, meaning funds in 401(k)s that track those indexes may automatically buy SpaceX shares. However, initial weighting will be modest because only a small portion of SpaceX’s stock is publicly available. Nasdaq has moved to speed up mega IPOs’ inclusion, FTSE Russell is also adjusting rules, but S&P Dow Jones Indices says it won’t include SpaceX in the S&P 500 for at least a year. Investors should expect exposure to grow gradually, with bespoke SpaceX ETFs and direct stock purchases as alternative paths. As always, diversify and consider broader market exposure to avoid single-stock risk.

via CNN|

#401k #etfs #indexes

personal-finance1 month ago•47 min saved

SpaceX stalls on S&P inclusion; retirement funds still at Musk's mercy

SpaceX won’t be fast-tracked into the S&P 500, delaying its inclusion for at least a year, so many 401(k)s and index funds will still indirectly own SpaceX; the company is also reserving up to 30% of its IPO for retail investors, a move aimed at tapping Elon Musk’s fanbase and boosting demand while retirement portfolios remain exposed to the megacap.

via Fortune|

#401k #megacaps #personal-finance

politics1 month ago•14 min saved

Democrats Push to Block Bitcoin in 401(k) Retirement Plans

Sen. Bernie Sanders and Sen. Elizabeth Warren urge the Labor Department to withdraw a proposed rule that would let 401(k) plans offer cryptocurrencies, arguing it would overturn ERISA’s prudence standard and expose about $14.2 trillion of retirement savings to volatile assets with limited oversight—and citing conflicts of interest due to the Trump family’s crypto ventures. The administration defends the move as expanding worker choice and preserving a prudent process, while critics stress crypto volatility and fraud risks.

via Bitcoin Magazine|

#401k #bitcoin #cryptocurrency

politics1 month ago•6 min saved

Senators Urge DOL to Block Crypto in 401(k) Plans

Senators Bernie Sanders and Elizabeth Warren urge the Labor Department to drop a proposed rule that would allow fiduciaries to offer crypto and other riskier assets in 401(k) plans, arguing it weakens fiduciary standards, threatens retirees’ savings, and could benefit Trump-linked crypto ventures; the DOL has not immediately commented.

via Decrypt|

#401k #cryptocurrency #erisa

business2 months ago•5 min saved

TTEC Halts 401(k) Match to Fund AI Push Amid Revenue Slump

TTEC will suspend its discretionary 401(k) employer match for US staff through the end of 2026 to free cash for AI investments, training, and automation as it faces a revenue drop; the company says the move, part of broader benefit rollbacks seen at other firms, will be reassessed early next year to decide whether to resume contributions.

via Business Insider|

#401k #ai #benefits

retirement2 months ago•9 min saved

70-Year-Olds Face Wide Retirement-Savings Gap, Median About $200K

The article uses Federal Reserve data for ages 65–74 to show a clear gap in retirement wealth: the mean savings is about $609,230 while the median is around $200,000, with 401(k) balances averaging $299,442 (median $95,425). Many 70-year-olds are already taking withdrawals, so coordinating drawdowns with Social Security and home equity is crucial, especially as health‑care inflation outpaces Social Security COLAs (2.4% vs. 5.8% in 2026). A rough guide using the 4% rule suggests $200k yields ~ $8k/year, $600k about $24k, and $1M about $40k, with Social Security expected to fill the gap. The piece also suggests practical steps to boost or stretch savings in the 70s, such as downsizing, leveraging home equity (reverse mortgage/HELOC), or taking part-time work to help ensure a sustainable income into the 80s and beyond.

via FinanceBuzz|

#401k #mean-vs-median #retirement

business2 months ago•2 min saved

Rising Costs Prompt Surge in 401(k) Hardship Withdrawals

As costs for essentials climb, more Americans are tapping hardship withdrawals from workplace 401(k) plans, a shift driven by looser rules and rising expenses; the piece profiles Adia Rad, a single mother who withdrew thousands in 2025 to cover car fees, dental care, and other emergencies, accepting penalties and taxes for immediate cash while risking future retirement security.

via The New York Times|

#401k #business #hardship-withdrawals

policy3 months ago•3 min saved

Labor Department to widen 401(k) options by welcoming alternative investments

The Department of Labor’s Employee Benefits Security Administration proposed a rule to broaden 401(k) investment options by creating process-based safe harbors that guide fiduciaries to objectively evaluate alternative assets—assessing factors like performance, fees, liquidity, valuation, benchmarks, and complexity—while staying within ERISA prudence. Aimed at more than 90 million Americans, the rule signals a neutral, rule-based approach to diversify retirement lineups and follows related executive orders and prior guidance shifts.

via U.S. Department of Labor (.gov)|

#401k #alternative-assets #erisa

business3 months ago•307 min saved

DoL proposal expands 401(k) menus to include private equity and more

The U.S. Department of Labor unveiled a proposed rule giving 401(k) plan fiduciaries maximum discretion and flexibility to offer private equity and other so-called alternative investments (like crypto and commodities) as designated options. The rule emphasizes a neutral, prudent-evaluation process and makes clear managers can select any investment without the previous “picking winners and losers.” While it could make it easier for employers to add alternatives, they are not required to do so and must still assess performance, fees, liquidity, and other factors. Industry and political reactions are mixed (Trump supports it; Warren opposes), and even if finalized, changes may take years to affect plan menus.

via CNN|

#401k #alternative-investments #business

business4 months ago•3 min saved

Americans Tap 401(k) Hardship Funds at Record Pace Even as Balances Climb

Americans are taking hardship withdrawals from retirement accounts at a record pace—6% of Vanguard clients in 2025, up from 4.8% in 2024—while average 401(k) balances rose about 13% since 2024 to roughly $167,970. Withdrawals incur penalties, taxes, and reduced future growth, but easier access and automatic enrollment may explain the uptick; Fidelity data show a similar trend, suggesting growing enrollment and some financial strain, though overall balances remain higher.

via Business Insider|

#401k #business #fidelity

politics4 months ago•5 min saved

Trump pitches universal retirement accounts for workers without 401(k)s

In his State of the Union address, Trump proposed new government-backed retirement accounts for the roughly 56 million Americans without employer-sponsored plans, modeled on the federal Thrift Savings Plan with a government match up to $1,000 per year. The plan would be portable and could attract private philanthropy, expanding provisions from Secure Act 2.0. Experts see potential to close the retirement gap but question funding and whether it will reach those most in need, with many workers still far from retirement readiness even with existing plans.

via CBS News|

#401k #politics #retirement