CHICAGO (Reuters) – It was a small but important line item in the recent “fiscal cliff” deal. As part of the American Taxpayer Relief Act of 2012, Congress made it possible for all retirement savers to convert their 401(k) accounts to a Roth 401(k) without moving money out of the workplace plan.
The law permits all retirement savers to convert existing 401(k) retirement plan assets to a Roth 401(k), so long as their plan offers Roth options and adds the conversion feature. Previously, conversions could be done only by savers who also were eligible to take a distribution from the plan — in most cases, people age 59½ or older.
CHICAGO (Reuters) – Unemployment can throw a wrench into even the best retirement plan — especially for older workers in their peak earning and retirement saving years.
Now that the employment picture finally is starting to improve, older workers who have been through the wringer of joblessness face the task of getting those plans back on track.
CHICAGO, Jan 10 (Reuters) – A procrastinators’ alert: anyone
who gets a benefit check from the federal government has less
than two months to go paperless.
March 1 is the deadline for nearly everyone who receives
Social Security, Supplemental Security Income (SSI) or veterans’
benefits to switch to the government’s new electronic payment
system. The Go Direct program – launched in 2005 – has already
converted 93 percent of all benefit payments; new recipients
have been all paperless since 2011.
CHICAGO (Reuters) – Tough economic times and intractable unemployment have made career reinvention a necessity instead of a virtue for many older Americans. But sometimes finding a new career after middle age is about more than just bringing in a paycheck.
The so-called “encore career” is continuing to gain ground among millions of baby boomers. The idea is to create a new career out of a passion — and a desire to make a positive social contribution. Salaries are sometimes smaller, but there is a great sense of purpose.
CHICAGO, Jan 2 (Reuters) – There’s a lot of complaining
about the fiscal cliff deal, but there is one notable bright
spot: Congress agreed to take a hard look at long-term care.
With the repeal of the Community Living Assistance Services
and Supports Act (CLASS Act), a feature of Obamacare that
attempted to create a mass “public option” for long-term care
insurance, comes a commission tasked with developing a new
workable solution to one of our most serious retirement security
problems facing the nation.
CHICAGO, Dec 19 (Reuters) – Let’s talk “chained CPI” – a
topic that sounds so wonky only a Washington policy nerd could
love it. And that’s probably what Washington politicians hope it
sounds like to you.
The chained CPI is the new way to measure inflation that
President Obama is proposing to set cost-of-living adjustments
(COLAs) for Social Security and other government benefits. So
far, it is his main concession to Republicans hungry for
entitlement cuts as part of a fiscal cliff deal. And chained CPI
proponents often describe it as a small, relatively painless
change — a technical fix aimed at making COLAs more accurate.
CHICAGO (Reuters) – If you are still wondering whether we are in a “new normal” investment climate of ultra-low interest rates, wonder no more: Federal Reserve Chairman Ben Bernanke settled any lingering doubts last week when he guaranteed rates will stay near zero at least through the middle of 2015 — or until the jobless rate falls to at least 6.5 percent, or the inflation rate jumps above 2.5 percent.
Bernanke’s unprecedented announcement(see link.reuters.com/kuj64t) might be good for the economy, but it is bad news for retirees, who already have suffered through four years of historically-low interest rates.
CHICAGO (Reuters) – On September 11, 2001, Lorraine Decker had it made. She and her husband Ken had a lucrative Houston financial planning practice specializing in retirement seminars all over the world for corporate employees. That day, they were waiting for a flight to New Orleans at the Newark airport when the first plane hit the twin towers in New York City.
With all air traffic grounded, the Deckers managed to rent a car to drive home to Houston. “We had the time to slow down and reflect on our priorities and the future of the nation, and we were feeling a profound need to help recreate the future,” she recalls.
By Mark Miller
CHICAGO, Dec 12(Reuters) – IBM ads urge us all to follow its
lead and help “build a smarter planet.” Let’s hope other
companies don’t follow Big Blue’s latest move: an overhaul of
its 401(k) plan that shifts its matching contribution to a
Starting next year, IBM will shift its matching contribution
from semi-monthly to a lump sum paid each December 31. Leave the
company before December 15, and you’ll get no match at all for
CHICAGO (Reuters) – Congressional Republicans want to raise Medicare’s eligibility age as part of a deal with Democrats to avoid falling off the fiscal cliff. Raising the eligibility age from 65 to 67 would save some money for Medicare and low-income seniors. But at the same time, it would boost out-of-pocket insurance costs for two-thirds of seniors in that age bracket and those who are younger, plus raise overall healthcare spending for the federal government, states and employers.
Start shifting insurance risk in one age bracket, and the effects ripple.
First, the youngest, relatively healthy seniors would move out of the Medicare risk pool, raising the cost — and premiums — of covering older beneficiaries.