News Archive

"[T]he main risks you face in retirement come from events that will either lower your expected assets or increase your expected spending liabilities. These risks include: [1] Less favorable than assumed investment returns; [2] Higher that assumed future inflation or cost increases; [3] Lower than assumed Social Security payments; [4] Uninsured asset losses; [5] Unanticipated spending ... [This article describes] how you can stress test some of these risks[.]"  MORE >>

"Most people want a long and secure retirement and, to that end, have saved and built up investments over time.  ... [T]hreats that can disrupt those retirement savings and diminish their anticipated returns [include] ... [1] Uncertain interest rates ... [2] Market volatility ... [3] Withdrawal timing and sequence of returns risk ... [4] Government policy uncertainty ... [5] Increasing longevity."  MORE >>

"Opening a custodial IRA for a grandchild is a savvy move that combines estate planning with a massive head start on wealth building. For grandparents, it's often more efficient than a traditional savings account or even a 529 plan, depending on the goal. For grandchildren, it can be invaluable, especially if they graduate from college during a bad economy."  MORE >>

"[T]here are some situations where contributing to a 401(k) retirement account might not be a smart money move for seniors. This usually occurs after workers have accumulated a large portfolio and are maximizing their tax strategy in retirement. Many people may also need to stop maxing out a 401(k) when they have competing financial priorities."  MORE >>

"With this approach, money is withdrawn strategically to limit your tax exposure. The less you pay Uncle Sam, the more you have to spend or leave to your heirs. It's a strategy any retiree can use, but timing is everything. Those who spend more early in retirement must structure their plans differently from those who wait until later."  MORE >>

"You've planned for retirement -- saved diligently, mapped out your Social Security strategy and thought through market risks. But what happens if one day, you simply can't manage your money anymore? ... [1] Name a trusted contact on your financial accounts ... [2] Durable power of attorney ... [3] Health care power of attorney ... [4] HIPAA authorization ... [5] Last will and testament ... [6] Make sure your family knows your team."  MORE >>

"[P]ushing back against some of the more recent wave of lawsuits seems prudent. But the DOL shouldn’t completely throw away what, to date, has been its main way of ensuring that employers manage 401(k)s responsibly. The quality management of all of our retirement savings depends on it."  MORE >>

"Most older Americans want Congress to 'save Social Security (and Medicare).' Many of those individuals believe (hope) that Congress will not reduce their benefits, but will, instead, save the system through increased revenue, from some source that will presumably not negatively affect them. And maybe this will be what happens, or maybe not. It is arguably more prudent and conservative to assume some level of benefit cuts will occur than to assume none."  MORE >>

"[This alert] summarizes what you must know for your tax return in 2026 if you deferred compensation into and/or received distributions from an NQDC plan in 2025.... Changes in reporting on IRS Form 1040.... W-2 reporting still potentially unclear.... What to do if your company's NQDC plan violates section 409aA.... Mistakes to avoid with filing extensions.... Equity compensation too?"  MORE >>

"[F]or federal employees and other government workers, the decision to convert money from a Traditional TSP to Roth may require more careful timing than the headlines suggest. As 2026 approaches, Roth conversions are still allowed, but the tax planning surrounding them is becoming more complex."  MORE >>

"When Congress created the Federal Employees Retirement System (FERS) in the mid-1980s, it fundamentally changed how federal retirement works. The earlier Civil Service Retirement System (CSRS) relied almost entirely on a large government pension. FERS replaced that approach with a three-part system that resembles private-sector retirement programs. For today's federal employees, retirement planning under FERS requires careful coordination of three sources of income: the basic annuity, Social Security, and the Thrift Savings Plan (TSP)."  MORE >>

"Retirees often rely on simple, hands-off spending strategies ... These approaches require little engagement or complex decision-making and may result in suboptimal spending.... Goal-setting may be the missing driver, where retirees may need new or renewed goals in retirement to motivate more-engaged spending decisions."  MORE >>

"Employers may now allow employees to elect to have fully vested matching and nonelective contributions made to a designated Roth account under a qualified plan, or a Roth SEP IRA or Roth Simple IRA. For tax treatment and income tax purposes, the IRS treats these designated Roth employer contributions as if they were in-plan Roth rollovers ... Because of this reporting treatment, Form 1099-R must be issued for these contributions."  MORE >>

"You should have no problem if you were in only one plan during 2025. Your plan should have automatically blocked you from exceeding the deferral limit. Even if that didn't happen, the plan is responsible for fixing the problem. But you may have a problem if you were in two different plans during the year because you had two jobs at the same time or changed jobs. Since one plan could not be expected to know how much you contributed to the other plan, the burden is on you to keep track of your combined deferrals."  MORE >>

"Roth accounts are the most tax advantageous in retirement, followed by a taxable brokerage account and traditional tax-deferred assets.... Retirees should be careful if they have taxable assets with a really low cost basis. For a lot of households, postretirement, pre-Social Security, and pre-RMD years can be very low-tax years, where you can accelerate withdrawals from a traditional IRA at an advantageous tax rate."  MORE >>

"During the 2026 State of the Union address, President Trump highlighted a new federal program that will provide a government match on retirement savings for millions of Americans. The program is known as the Saver's Match, and it was enacted as part of the SECURE 2.0 Act of 2022. It applies to tax years beginning on or after January 1, 2027."  MORE >>

"When a transactional mistake is made with retirement plan or IRA assets, there is oftentimes a mechanism to correct the error.... [S]ome transactional mistakes have no corrective steps.... Such missteps can create massive tax bills and result in unintended penalties. Many of these 'fatal errors' involve rollovers.... [1] Non-spouse beneficiary rollovers.... [2] Spousal rollover.... [3] Exceeding the one-rollover-per-year rule. "  MORE >>

"Intent alone isn't enough to change beneficiaries on retirement plans.... ERISA requires strict adherence to plan documents, and courts will not honor beneficiary changes made through informal channels like faxes or verbal requests if the plan specifies a different procedure.... Review beneficiary designations after major life events, follow plan procedures exactly, obtain written confirmation, and act promptly." [Packaging Corp. of Am. Thrift Plan for Hourly Emps. v. Langdon, No. 25-1859 (7th Cir. Feb. 2, 2026)]  MORE >>

"For 2025 taxes due in 2026, the Saver's Credit is limited to $1,000 for individuals or $2,000 for married couples filing jointly whose income is less than certain thresholds and who have contributed in the previous year to a ... qualifying retirement plan.... [T]he average amount claimed by taxpayers of all filing statuses via the Saver's Credit in 2022 was $194."  MORE >>

"CPAs are in a great position during the tax filing season to remind individuals of these Roth catch-up requirements, and to remind them to ask their employers if any action is required on their behalf for making any catch-up contributions in the future. Depending on the facts and circumstances, individuals under the age of 50 who expect to have wages above the threshold in the near future may be more inclined to contribute on a pre-tax basis, knowing that the Roth option could be required on a portion of their retirement savings."  MORE >>

"[B]ecause the IRS has already done the work of calculating withdrawal tables meant to gradually deplete a portfolio throughout retirement, the RMD method presents a relatively easy-to-understand strategy that doesn't require special software or decision trees to implement. And with a few simple modifications ... advisors can help their clients customize the RMD method to meet their own needs and ultimately reduce the uncertainty around drawing down their portfolio in retirement!"  MORE >>

"Following annual portfolio loss, don't fully adjust your withdrawal rate for inflation.... Take withdrawals in line with required minimum distributions.... Implement guardrails on your portfolio.... Assume spending declines in line with historical data.... Take a fixed percentage of your portfolio each year.... Take a constant percentage of your portfolio's 10-year average value.... Apply probability-based guardrails to your withdrawals.... Use the Vanguard dynamic spending method."  MORE >>

"Individual(k) plan loans allow you to borrow from your own retirement savings and repay yourself over time without the immediate taxes or penalties associated with a standard withdrawal.... This guide explains how loans work and outlines key 401(k) loan rules and limits[.]"  MORE >>

"Typically, 401(k) withdrawals taken prior to age 59 and 1/2 are subject to an early withdrawal penalty. While some exceptions exist already, a new rule allows savers to tap their 401(k)s early to cover long-term care insurance premiums. There are still restrictions and drawbacks to keep in mind."  MORE >>

"For many retirees, spending more at the beginning of retirement is a top priority. And after spending decades working and saving, retirement can be the perfect time to enjoy the fruits of your labor. Starting with a more generous withdrawal rate can make a meaningful difference in spending early in retirement, when retirees are more likely to be healthy, active, and able to enjoy travel, dining out, concerts, and the like."  MORE >>