401 k s Where You Stand: related news

Roth 401(k) a boon later with taxes

Question: I'm in my 20s and work for a company that offers both a regular 401(k) and a Roth 401(k). I'm trying to decide which to use. Is there an age when it makes sense, or doesn't, to choose the Roth 401(k)? How do you decide? - R.S., Denver

Final Roth 401(k) Distribution Regulations

MAY 2008 - On April 30, 2007, the IRS published final regulations on the taxation of distributions from designated Roth accounts, better known as Roth 401(k)s and Roth 403(b)s. This article mentions only the Roth 401(k), but the information applies to Roth 403(b)s as well. These final regulations for the taxation of Roth 401(k) distributions are effective April 30, 2007, and generally apply to tax years beginning on or after January 1, 2007. Similar regulations will apply to Roth 403(b) plans when the final 403(b) regulations are released.

Should You Tap Your 401(k) Now?

p>Have you ever taken a loan from your 401(k)?

If you have, you're not alone. A number of studies in recent years have shown that about a fifth of 401(k) plan participants have loans outstanding at any given time. And while 401(k) loans are a once-in-a-lifetime event for some, many other folks treat their retirement savings as yet another revolving line of credit.

Rules Push Workers into 401(k)s

New employees who don't enroll in their company's 401(k) plan next year may find themselves saving for retirement anyway. A new law making it easier for companies to automatically enroll their employees in 401(k) plans goes into effect December 24. Many employees will now be given the choice to "opt out" of their company's default 401(k) plan rather than "opt in," as they do now.

Employers May Now be at Risk of Being Sued Over 401(k) Costs

RICHMOND, Va., May 6 /PRNewswire/ -- According to a recent Supreme Court ruling, employers may now be at risk of being sued by individual 401(k) participants. Justice John Paul Stevens ruled that ERISA "authorize[s] recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account." Since excessive 401(k) fees can certainly decrease the value of a participant's plan assets, this ruling may put many employers at risk of potential lawsuits. "Part of an employer's responsibility as a plan trustee is to know the total cost of the company's 401k program and whether or not such cost is reasonable under ERISA," states David B. Loeper, CEO of Financeware, Inc. and author of Stop the 401(k) Rip-off! "Plan trustees are at risk if they cannot document that they have evaluated the total costs participants bear

401(k)s: Where You Stand

Have you ever wondered how your 401(k) nest egg compares with those of coworkers or neighbors your age? Here's a sneak peek into what Americans have stashed away in their 401(k)'s and how they've invested their money, by age group.

Merrill Lynch Uni-K 401(k) Plan

Merrill Lynch and Pioneer Investments are offering the Uni-K Plan - a 401(k) plan designed exclusively for owner-only businesses.

ShareBuilder401(k) Reports Surging Demand for Small Biz 401(k) Plans

BELLEVUE, Wash., May 20 /PRNewswire/ -- At a time when many Americans are scrambling to make ends meet, a surprising number of small businesses are finding the wherewithal to finally begin saving for retirement, according to ShareBuilder401(k), a leading provider of 401(k) plans for small businesses.

ShareBuilder401(k) Reports Surging Demand for Small Biz 401(k) Plans

BELLEVUE, Wash., May 20 /PRNewswire/ -- At a time when many Americans are scrambling to make ends meet, a surprising number of small businesses are finding the wherewithal to finally begin saving for retirement, according to ShareBuilder401(k), a leading provider of 401(k) plans for small businesses.

ShareBuilder401(k) Reports Surging Demand for Small Biz 401(k) Plans

BELLEVUE, Wash., May 20 /PRNewswire/ -- At a time when many Americans are scrambling to make ends meet, a surprising number of small businesses are finding the wherewithal to finally begin saving for retirement, according to ShareBuilder401(k), a leading provider of 401(k) plans for small businesses.

401(k)s Flee for the Hills

According to the Hewitt 401(k) Index, in March, many investors moved their 401(k) money from stocks to bonds. (OK, from "equities" to "fixed income investments," if you want to get all fancy about it.) Unfortunately, that's one of the worst possible moves those investors could make.

Can Banks Win the 401(k) Lottery?Loading...

Total 401(k) plan assets grew 12% to $2.9 trillion last year, and Simple, SEP and Solo 401(k) plans saw double-digit growth, reaching $300 billion in assets, according to a study by the Society of Professional Asset Managers and Record Keepers, or SPARK.

5 Reasons to Avoid 401(k) Debit Cards

New 401(k) debit cards make it even easier to flunk do-it-yourself retirement. Investors should be wary of the potential pitfalls of 401(k) debit cards, according to an investor alert from the Financial Industry Regulatory Authority (FINRA), a nongovernmental securities industry regulator.

Traditional Pensions Outperform 401(k)'s

During the bull market of the late 1990s, 401(k) plans outperformed traditional pension plans. But this decade has brought a reversal of fortune: During both the 2002 bear market and the 2003-2006 bull market, traditional pension plans outpaced 401(k)'s, according to an analysis by consulting firm Watson Wyatt Worldwide.

Workers are making 401(k) mistakes that may dash retirement plans

SAN FRANCISCO (Menafn - MarketWatch) -- Is more than half of your 401(k) invested in your own company's stock? In an ideal world, retirement savers would scoff at that question. But the world of retirement savings is far from ideal, as revealed by the results of a new study released Monday of almost 1 million workers' 401(k) portfolios at 82 large firms.

TOOLS FOR EVALUATING YOUR 401(K) PLAN

Q: How can I prove that my company 401(k) plan is a loser? The company I work for has our plan with Putnam. I believe there is no combination of funds in the 401(k) that has ever beaten the S&P 500 index over any period of time.

Why ETFs And 401(k)s Will Never Match

Exchange-traded funds, long known as a low-cost method of investing for individual investors, are receiving increasing media exposure as a potential solution to reduce 401(k) plan fees. In fact, ETFs have been touted by at least one firm as the "low-cost solution for 401(k)s." The reason for the increased media exposure for ETFs is relatively straightforward: On average, ETFs cost less (i.e., have lower expense ratios) than actively managed mutual funds. However, comparing passively managed ETFs with actively managed mutual funds ignores the fact that there are already passive index mutual funds that are being used in retirement plans today.

7 Ways to Sabotage Your 401(k)

With its tax advantages and compounding magic, the 401(k) is likely to be one of the most powerful instruments in your retirement toolbox. But take care when managing this account: A few missteps can make a difference of thousands of dollars down the road. Here are seven potentially costly 401(k) traps, paired with advice from the pros on how to avoid them:

Retirement Living: Workers are making 401(k) mistakes that may dash retirement plans

SAN FRANCISCO (MarketWatch) -- Is more than half of your 401(k) invested in your own company's stock? In an ideal world, retirement savers would scoff at that question. But the world of retirement savings is far from ideal, as revealed by the results of a new study released Monday of almost 1 million workers' 401(k) portfolios at 82 large firms.

More companies offer Roth 401(k)s, but complexity remains a concern

After an initially cool reception, more corporations are beginning to offer employees the option of saving for their retirement in a Roth 401(k) plan. A large number of companies are still turned off by the relatively new retirement plan option, however, fearing that adding a Roth 401(k) feature to their benefits platform will only complicate matters for both employees and employer.

Peachtree LBP(R) Announces Update of Loan Rate for LBP 401(k) Plus(R)

NORCROSS, Ga. - Peachtree LBP, the Administrator for LBP 401(k) Plus, announced that today’s rate for loans made as part of LBP 401(k) Plus is 5.11%. The loan rate is based on the 12-month LIBOR rate (currently 3.16%) plus a margin

Peachtree LBP(R) Announces Update of Loan Rate for LBP 401(k) Plus(R)

NORCROSS, Ga. (Business Wire) -- Peachtree LBP, the Administrator for LBP 401(k) Plus, announced that today's rate for loans made as part of LBP 401(k) Plus is 5.11%. The loan rate is based on the 12-month LIBOR rate (currently 3.16%) plus a margin of 1.95%. (The LIBOR rate varies on a day-to-day basis, and the actual rate on an LBP(R) case is set at the time of funding.)

Paychex Offers Auto Enrollment Option for 401(k) Plans

ROCHESTER, N.Y. - Paychex, Inc. has announced the addition of auto enrollment as an optional plan feature of its 401(k) offerings, which will allow employers to automatically enroll their employees in the company 401(k) and increase overall plan participation. Since th

Paychex Offers Auto Enrollment Option for 401(k) Plans

ROCHESTER, N.Y., Jun 09, 2008 (BUSINESS WIRE) -- PAYX | Quote | Chart | News | PowerRating -- Paychex, Inc. has announced the addition of auto enrollment as an optional plan feature of its 401(k) offerings, which will allow employers to automatically enroll their employees in the company 401(k) and increase overall plan participation.

Large Defined Benefit Plans Produce Better Returns Than Comparable 401(k) Plans

From Spencer's Benefits Reports: Companies that sponsor both large defined benefit plans and 401(k) plans see better investment returns from their defined benefit plans, according to Watson Wyatt. This generally is true because larger plans have access to a wider variety of investment options and economies of scale. As reported in a recent Insider newsletter, Watson Wyatt used 5500 form data to calculate the median rate of return for plan sponsors that sponsored both a defined benefit plan and a 401(k) plan, each with at least 100 participants.

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