Tag

401k

All articles tagged with #401k

policy11 days 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

business11 days 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

business1 month 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

politics1 month 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

world2 months ago•36 min saved

Trump Tests 401(k) Flexibility for Home Purchases, Sparks Debate

President Donald Trump is set to unveil a plan allowing savers in 401(k) retirement plans to use some of their money for down payments on a home. While supporters see increased flexibility for would-be buyers, advisers warn of long-term retirement risks, potential benefits skewed toward wealthier savers, and questions about whether this actually helps those in greatest need. Details remain unclear as the policy is developed.

via Bloomberg.com|

#401k #down-payment #homeownership

business2 months ago•3 min saved

Trump Eyes Using Retirement Savings for Down Payments

President Trump is preparing to unveil a plan to let Americans tap retirement savings, including 401(k)s, for down payments on homes. Details on how withdrawals would work and tax implications are scarce. Supporters say it could ease near-term housing affordability, while critics warn it could undermine retirement security. The administration is also pursuing steps to lower mortgage rates through large-scale bond purchases and is considering limits on big investors in single-family homes.

via BBC|

#401k #business #home-buying

politics2 months ago•35 min saved

Trump pitches 401(k) funds for home purchases at Davos

President Donald Trump is set to unveil a plan at Davos to let savers use portions of their 401(k) retirement funds for down payments on homes; the mechanics are still being worked out, according to NEC Director Kevin Hassett, with current 401(k) loans/withdrawals limited and often costly. The move comes amid broader housing affordability concerns and follows a separate push for federal mortgage-support moves, as Republicans weigh potential reconciliation legislation.

via Bloomberg.com|

#401k #davos #housing

politics3 months ago•1 min saved

Trump Considers Executive Order to Address Housing Affordability and Wall Street's Role

President Trump is drafting an executive order aimed at addressing affordability issues, including potential changes to restrictions on using 401(k) funds for homebuying, amidst ongoing political debates about housing and inflation. Senate Democrats and Republicans are discussing policies that could impact the housing market and individual savings, with the White House indicating that policy announcements are forthcoming.

via Politico|

#401k #affordability #executive-order

finance3 months ago•5 min saved

New Rule Eases Penalty-Free 401(k) Withdrawals, but Practicality Questioned

A new rule allows penalty-free 401(k) withdrawals for long-term care insurance, but experts warn it may not be practical due to limitations and high costs of insurance premiums, and the potential tax implications of using retirement funds for this purpose.

via CNBC|

#401k #finance #insurance-costs

business5 months ago•2 min saved

Stock Market Hits Record Highs: Are We Ready?

The U.S. and global stock markets are hitting record highs, including bonds, gold, and cryptocurrencies, prompting investors to reassess their portfolios for risk as the market remains volatile with potential for sharp drops, despite optimistic forecasts and strong earnings.

via Yahoo Finance|

#401k #business #investment-risk

business6 months ago•1 min saved

High Earners Face 401(k) Tax Break Changes Amid New Regulations

Starting in 2026, higher earners with more than $145,000 in previous-year income will generally be required to make Roth 401(k) catch-up contributions, potentially affecting their tax planning strategies for retirement savings. Experts advise reviewing options with financial advisors to optimize tax benefits before the rule change takes effect.

via CNBC|

#401k #business #catchupcontributions

finance6 months ago•2 min saved

401(k) Contribution Rules Change May Impact High Earners Over 50

Starting in 2027, high earners over $145,000 who contribute to 401(k)s will only be able to make catch-up contributions with Roth (after-tax) dollars, removing the previous option of pretax contributions, which could impact their tax deductions and retirement savings strategies.

via Yahoo Finance|

#401k #contributionrules #finance

economy6 months ago•4 min saved

Americans Struggle to Save for Retirement Amid Rising Cost of Living

A Goldman Sachs study reveals that more Americans are living paycheck to paycheck, with 42% of younger workers having no savings after expenses, making retirement savings increasingly difficult due to rising costs of essentials like housing and healthcare. The shift from pensions to 401(k)s has placed more responsibility on individuals, many of whom feel unprepared for retirement, highlighting the need for new strategies and policy changes to address the growing financial insecurity.

via CBS News|

#401k #american-workers #economy

finance6 months ago•3 min saved

New Rule Alters Tax-Deferred Status for Some 401(k) Contributions

A new rule under the Secure 2.0 law will require high earners over 50 making catch-up contributions to their 401(k)s to pay income tax on those contributions starting next year, effectively converting them to Roth contributions. This change primarily affects those earning over $145,000, potentially increasing current tax bills but offering tax-free growth and withdrawals for the Roth portion. The rule aims to target high earners and may influence retirement savings strategies.

via CNN|

#401k #catch-up-contributions #finance

finance6 months ago•2 min saved

Gen X's Retirement Challenges and Savings Struggles

Many Generation X individuals face financial challenges for retirement, with low savings, lack of confidence, and a shift away from pensions towards 401(k)s, which have historically been less robust, leading to concerns about outliving savings and postponing retirement.

via Yahoo Finance|

#401k #finance #financial-planning