If you save for retirement through a 401(k) plan, you may have noticed changes to it over the years — for example, automatic increases in your contributions and 'catch-up' amounts for the over-50 crowd:
66-Year-Old Retiree Who Left the U.S. for Mexico: ‘Here's What You Can Buy Here for $5 Or Less'
For simple 401 plans, which small businesses might offer, there is a contribution limit of $14,000 for 2022. The catch-up amount is $3,000. Solo 401 plans — used by the self-employed with no employees except perhaps a spouse — come with the same contribution limits as traditional 401 plans.
Under an interim rule issued by the U.S. Department of Labor that's now in effect — a final rule is expected relatively soon and it could be different — two illustrations would be provided at least once a year. One would show estimated monthly income from a single life annuity and the other from a joint annuity with benefits for a surviving spouse.
House Ways and Means Chairman Richard Neal, D-Mass., sent a letter to the Labor Department in late 2020 in response to the interim rule, asking that there be additional assumptions — i.e., investment returns — included in the information provided to 401 participants."Pretty much everyone agrees it's useful information, but how you provide it is the sticking point," said Craig Copeland, a senior research associate with the Employee Benefit Research Institute.
"But people also say they are interested in a guaranteed source of income in retirement," Copeland said."So, that makes it tough." Any time between age 59½ and age 72, you would have the option to roll over that portion into a fixed annuity offered by BlackRock's insurance partners. Fixed annuities generally provide a minimum guaranteed rate of return on your principal.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
What 401(k) and IRA critics are missingOPINION: This year’s “high earner” may not be next year’s high earner. That makes 401(k)s even more important.
Read more »
With a turbulent Dow, what should you do with your 401(k) retirement account?Bumpy financial markets have you worried about 401(k)? Financial experts say slow down, don't do anything rash and remember long-term retirement goals.
Read more »
'No, no, no, no, no!' My wife and I are close to retirement, but we want to buy a house. Should I empty my 401(k) for the down payment?My wife and I are close to retirement, but we want to buy a house. Should I ‘clear out’ my 401(k) for the down payment?
Read more »
The 50 best baby names of 2022So far, here's what's trending for parents this year.
Read more »
With a turbulent Dow, what should you do with your 401(k) retirement account?Bumpy financial markets have you worried about 401(k)? Financial experts say slow down, don't do anything rash and remember long-term retirement goals.
Read more »
What 401(k) and IRA critics are missingOPINION: This year’s “high earner” may not be next year’s high earner. That makes 401(k)s even more important.
Read more »