All articles tagged with #401k
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.