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IRAs

Washington is set to become the latest state to run a retirement program that will provide coverage for private-sector employees whose employers do not. On March 27, Pat Sullivan, Executive Director of Legislative Affairs in Inslee’s office, issued an announcement that SB 6069 was among the bills... READ MORE
An interesting—and somewhat counterintuitive—report came out last week, one that cast doubt on the “common wisdom” regarding Roth versus traditional pre-tax savings. The assumption underlying the research[1] was that those who had not yet paid taxes on their savings (the traditional pre-tax... READ MORE
Automatic enrollment of eligible employees in the Hawaii Retirement Savings Program is closer to being put in place.  Sen. Sharon Moriwaki (D-Waikiki) introduced SB2553 on Jan. 19, 2024. Under the bill, employees would no longer be required to opt in to participate in the Hawaii Retirement Savings... READ MORE
Add the Evergreen State to those that provide retirement plan coverage for private-sector employees whose employers do not. Well, soon.  "In the beginning of March, Washington joined the 15 other states that had previously adopted state auto-IRA language, to provide the best opportunity for small... READ MORE
While traditional and Roth IRAs play a key role in household balance sheets, representing 36% of household financial assets among those owning them, new research also reveals that rollover activity, which helps many Americans preserve their retirement savings, has fueled recent individual... READ MORE
It is now possible to offer plan participants in 401(k), 403(b), and 457(b) plans the option to treat employer contributions as Roth contributions, under the SECURE 2.0 Act.  More precisely, it is Section 604 of the SECURE 2.0 Act that allows plan participants to elect to have any fully vested... READ MORE
The states that offer a retirement program for private-sector employees whose employers do not have a new prospective member: Michigan. Legislation has been entered in the state House of Representatives that would create such a program in the Wolverine State. The Retirement Savings Program Act, HB... READ MORE
Editor’s Note: This is part I of a two-part series. It’s not unusual for older generations to look askance at their younger counterparts and dismiss them with a harumph at the thought that one day they will come to the fore. But some recent data suggests that in the case of the youngest... READ MORE
OregonSaves, the first state-run program to provide retirement plan coverage to employees whose private-sector employers do not, is devoting $5 million to coverage for childcare providers. The Oregon Retirement Savings Board and State Treasurer Tobias Read made the announcement on Feb. 12.  In... READ MORE
On Feb. 7, House Ways and Means Committee Ranking Member Richard Neal (D-Mass.) introduced a bill to establish a federal auto-IRA for employers with more than 10 employees who do not currently sponsor a retirement plan.  The Automatic IRA Act of 2024 would require employees to be automatically... READ MORE
A bill before the Mississippi House of Representatives would establish a state-run retirement plan to provide coverage for private-sector employees whose employers do not offer one.  Rep. Orlando Paden (D-Bolivar) on Jan. 24, 2024 introduced House Bill 599, the Mississippi Secure Choice Savings... READ MORE
Washington—the state, not the city—is considering legislation that would establish a state-run retirement plan to cover those whose employers do not offer one.  If the legislation is enacted, the Evergreen State would join its Pacific Coast neighbors in providing such a plan. California was the... READ MORE
Rhode Island is on the road to possibly becoming a member of the Secure Choice Club. A bill has been introduced in the state’s House of Representatives that would establish a state-run retirement program that would cover those whose employers do not offer one.  Rep. Evan P. Shanley (D-East... READ MORE
Required minimum distributions (RMDs) are more than regulatory requirements—they affect real people. In its latest issue of Employee Plans News, the IRS provides a refresher concerning the application of the RMD rules regarding plan beneficiaries.  Spousal Beneficiaries  Spousal beneficiaries... READ MORE
An increasing body of research and results seem to confirm that state-sponsored retirement plans—and auto-IRAs specifically—close the coverage gap, not only by providing a public option but also by encouraging higher private plan adoption. Currently, 14 states have a mandate in place, with another... READ MORE
The IRS has issued a reminder that people born before 1951 need to take required minimum distributions (RMDs) from funds held in IRAs and other retirement plans by the end of the year. And in so doing, it provides an opportunity to in turn remind participants as well as clients whose participants... READ MORE
The IRS has just released new guidance in the form of questions and answers addressing several key provisions contained in the SECURE 2.0 Act of 2022. The IRS advises that the notice (Notice 2024-02) is not intended to provide comprehensive guidance as to the specific provisions of the SECURE 2.0... READ MORE
Reps. Darin LaHood (R-Ill.) and Linda Sánchez (D-Calif.) introduced a bill on Dec. 13 that would allow retirement savers to roll over their Roth IRA savings into a Roth workplace retirement plan such as a Roth 401(k), Roth 403(b), or Roth 457(b). The bipartisan bill, which the American Retirement... READ MORE
More good news on (closing) the retirement plan coverage gap, specifically related to state auto-IRA mandates. The American Retirement Association has long argued—and an increasing body of research confirms—that state-sponsored retirement plans close the coverage gap, not only by providing a... READ MORE
Delaware is joining the Partnership for a Dignified Retirement, an interstate consortium that helps states provide access to retirement plan coverage. The action brings Delaware’s program into formal cooperation with those of Colorado and Maine.  Colorado Gov. Jared Polis (D) signed the measure... READ MORE

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