Retirement Regulation

Sen. Bernie Sanders released a report on the problems facing the retirement system, as advocates of DB plans and proponents of DC plans squared off in search of solutions for employees without a retirement plan at work.

In a letter to House Ranking Member Richard Neal, over 20 companies and industry trade associations expressed support for the Automatic IRA Act of 2024, which will provide more access to retirement plans for small businesses.

Although plan amendments and related changes to summary plan descriptions may be delayed, identifying applicable changes and taking necessary steps is crucial for compliance.

The new law bolsters small businesses' ability to provide retirement benefits to their employees by offering tax credits to offset costs, however, for advisors, it's an unprecedented opportunity to tap into a new revenue stream.

"The broad-reaching new fiduciary rule regulates retirement accounts far beyond employer-sponsored benefits," said subcommittee Chairman Rep. Bob Good, R-Va., but proponents said the old rules no longer protect investors.

Student loan borrowers making payments have significantly lower 401(k) contribution rates, however, some of the impact of the payments was lessened by auto-enrollment or employer contribution match, says a new report.