Congress is considering a proposal that would allow small companies to create a multiple-employer retirement plan to enable their workers to build their nest eggs, according to this article on MarketWatch. A multiple-employer plan is a good option because it would reduce the cost per employer and provide greater portability for employees. Workers who have no access to an employer-sponsored plan have other retirement saving options, such as tax-advantaged Roth and traditional IRAs. “There are options like IRAs where workers can save on their own, but the evidence is clear workers don’t do that when they are on their own,” says an expert.
The rise in cyberattacks should prompt 401(k) participants to ask their plan administrator about the measures in place to protect their accounts, according to this article on Forbes. "While hacking is nothing new, the pace of large-scale cyberattacks has accelerated significantly in recent years," states a report from Callan Associates. "More worrisome for many plan sponsors [employers], the focus of cyberattacks in the defined contribution (401k) world has shifted from hardened targets like recordkeepers and custodians to plan sponsors, which often lack the extensive cybersecurity defenses of their vendors."
While workers have the option of saving in their employer-sponsored retirement plan and IRA, they may also qualify to contribute to a SEP IRA if they have a side job, according to this article on personal finance website Motley Fool. Like a traditional IRA, a SEP IRA is funded with deductible contributions, but has a higher annual contribution limit. However, clients will be better off saving in a Roth IRA, which does not provide an upfront tax deduction on the contributions but offers totally tax-free withdrawals in retirement.
With the rising average life span, many seniors are leading a more meaningful life in retirement, as they engage in various activities that keep them active and productive, write experts on CNBC. "Perhaps we need to replace the word retirement with transition," explain the experts. "It seems more suitable, because it means movement, passage or change from one stage to another."
