DWC - The 401(k) Experts
July Business Services
Premier Plan Consultants
Cetera Retirement Plan Specialists
Farmer & Betts, Inc.
Qualified Plan Consultants, LLC (QPC)
“BenefitsLink continues to be the most valuable resource we have at the firm.”
-- An attorney subscriber
|How to Save Taxes with the Net Unrealized Appreciation Rules for Company Stock in a 401(k) |
Kristin McKenna via Forbes; subscription may be required
Sept. 8, 2021
"Under the net unrealized appreciation rules, employees can roll over the portion of their 401(k) invested in company stock to a brokerage account and pay tax at more favorable long-term capital gains tax rates (rather than higher ordinary income rates) when the shares are sold. It doesn't always make sense to use NUA -- or keep employer stock in your retirement plan -- so carefully weigh the pros and cons."
| An Employee's 401(k) Plan Guide |
Sept. 3, 2021
"[This special report addresses] how to make the most of 401(k) plans today. [It includes] tips for how to invest in your plan and what to do if your plan is sub-optimal ... what alternatives you have for retirement saving if you don't have access to a 401(k) plan [and] ... some ideas for how to reform the retirement savings system over time[.]" [Specific reports are:  100 Must-Know Statistics About 401(k) Plans;  What Should I Do If I Don't Have a 401(k)? and  A Checklist for Lobbying [Your Employer] for a Better 401(k).]"
|Questions Retirees Often Get Wrong About Taxes in Retirement |
Aug. 30, 2021
"Now that you've put together your retirement nest egg, you want to make sure that you're not overpaying Uncle Sam. To help you evaluate your current tax knowledge, here are 12 questions retirees often get wrong about taxes in retirement."
|IRS FAQs: Substantially Equal Periodic Payments |
Internal Revenue Service [IRS]
Aug. 17, 2021
" Is there an exception to the tax for distributions in substantially equal periodic payments? ...  Is there guidance on this exception? ...  How are interest rates determined? ...  How is life expectancy determined? ...  How is the account balance determined? ...  How are payments determined under the three methods? ...  Can I change from one method to another in calculating substantially equal periodic payments? ...  What is the effect of an account being completely depleted? ...  Are these the only acceptable ways of determining substantially equal periodic payments? ...  Can I take my substantially equal periodic payments on a monthly basis? ...  When do I fulfill my obligation to take substantially equal periodic payments?"
|RMDs Are Back: How to Soften the Tax Blow |
Aug. 4, 2021
"Take your first RMD early ... Make a Qualified Charitable Distribution (QCD) ... Invest in a Qualified Longevity Annuity Contract (QLAC) ... Continue working."
|Understanding the Basics of Annuities |
Aug. 4, 2021
"[N]ot all annuities are the same ... Some might fit your situation and preferences, some may not. Some have high commission costs, and others do not. Avoiding them completely is like ignoring a tool in your toolbox that might be exactly what you need. There are many types of consumer annuities available; each with its own unique characteristics."
|The Mega Backdoor Roth: Here We Go Again |
July 29, 2021
"The Mega Backdoor Roth comes into play in one of two ways. The individual either takes an in-service withdrawal and rolls it to a Roth IRA or utilizes an in-plan Roth rollover feature to convert to Roth within the plan. This may sound like a complicated cool investment strategy, but it RARELY works."
|The Truth About Paying for Long-Term Care in Retirement |
Forbes; subscription may be required
July 8, 2021
"Despite report after report telling today's seniors that whatever savings they have will be consumed by exorbitant long-term care costs in the decades to come, these concerns may be overblown. A recent study ... sifted through a trove of real-life data and found that less than a quarter of 65-year-olds will require the type of intensive care -- both in terms of severity of the illness and length of recovery -- that causes so much financial drain."
|The Mysterious Order of Asset Withdrawal |
July 6, 2021
"Even though there is retirement software telling you that if you play the retirement tax game just right you can spend 10% more money per year, you are likely going to spend about what you did pre-retirement.... Tax law regarding brackets, inheritance rules, RMDs, capital gains treatment, step-up in cost basis, etc. will change many times during a 25-year retirement. The assumptions made for your withdrawal plan may be moot in 18 months. It's better to be flexible than try to be 'perfect.' "
|Investing During Retirement: Income Allocation Planning |
June 28, 2021
"[W]hen planning for retirement income, include a financial product designed for lifetime income: annuity payment contracts. And reduce your 'income risk' by adding safe income first. Manage any residual income risk in real time as market corrections, emergencies or life events occur, rather than through upfront simulations of hypothetical results."
|401(k) Rollovers: How to Make an Informed Decision |
June 23, 2021
"To retire as soon as possible, you must avoid three pitfalls when saving throughout your working years -- underperforming investments, inappropriate asset allocation, and excessive administration fees.... The 401(k) and IRA features you want for the long-term [are] ... market returns ... professional investment advice ... minimal administration fees ... The key differences between 401(k) and IRA accounts [are listed side-by-side]."
|How Can We Retire Early Without Paying So Much in Taxes? |
The Madison Leader Gazette
June 21, 2021
"Is it worth just paying the 10% penalty on early withdrawals versus paying tax and converting a large amount of the former 401(k) plans to a Roth? My company does allow withdrawals through the rule of 55 but you have to withdraw it all and I know I don't want that tax liability."
|Why Americans Should Stop Using 401(k)s Like Piggybanks |
June 16, 2021
"Taking these early distributions can result in a loss of 25% of total retirement savings over time. Withdrawing a small balance instead of rolling it over is particularly harmful for younger workers."
|Want to Write a Killer Letter to Appeal a Claim Denial? Meet Jeannine |
Kaiser Health News
June 14, 2021
"Jeannine Cain started her career working for medical offices -- dealing with insurance companies on their behalf -- then worked for Blue Cross, and now as a health care data consultant.... When her son got an unfair, jumbo-size medical bill, she put her knowledge to work -- and wrote a killer appeal letter. Now she's sharing that knowledge -- and the letter ... [a]long with annotations about how she structured the letter and why she included the specifics that she did."
|Essentials for a Successful Retirement |
June 14, 2021
"Retirement is the longest vacation you will ever take.... [Be] as specific as possible about what your lifestyle expenses will be as well as your general living expenses.... Successful retirees should not let the market dictate their happiness.... Taxes are something retirees seem to underestimate."
|If You've Dipped Into Savings, Here's How to Get Your Retirement Account Back on Track |
June 14, 2021
"If you withdrew or plan to withdraw tax-deferred savings as a result of financial hardship, you will need a strategy for getting your retirement plan back on track.... Consider recontributing some or all of the distributed funds within three years or increasing your contributions to make up for the lost time. Be sure to amend your tax return if you report distributions as taxable income and later return them to the account within the three-year period."
|Should My Money Stay or Go? Employer 401(k) vs. IRA Rollover |
June 11, 2021
"Employers are the newest contenders for the rollover assets from your retirement plan. Here's what to consider when leaving your job and choosing whether to leave your money in your old employer's defined contribution plan or roll it over to an IRA."
|Money Management During Retirement |
Meld Financial, Inc.
June 8, 2021
"Now that you've retired, your income situation is likely quite different than while you were working. That means your money management techniques may need some adjustments. Here's a few things to keep in mind as you enjoy your retirement years."
|Missing the 401(k) Plan Match |
TriStar Pension Consulting
June 8, 2021
"Depending on when the plan sponsor chooses to calculate and contribute matching dollars, an employee contributing the maximum amount of deferrals ($19,500 for 2021) may miss some of their potential matching funds if they try to contribute all of it early in the year rather than equally out of each paycheck during the year."
|Continuing to Work, Even at a Job Without Benefits, Boosts Retirement Income |
Squared Away Blog, by the Center for Retirement Research at Boston College
June 1, 2021
"Retirement security improved over time for the under-prepared people who continued to work -- in contrast to an erosion in security for the people who, despite falling short, had retired at 62 and locked in a small Social Security check. The most interesting finding concerned the older workers who had extended their employment by switching to no-benefit jobs. Their retirement income in their late 60s replaced 68 percent of their past earnings, on average -- still less than what they need but up dramatically from 52 percent if they had retired early."
|Planning for Your Retirement: A Checklist |
May 27, 2021
"With the caveat that the when of retirement may be out of your control -- if you're, say, forced to retire earlier than planned or need to stay on the job longer to make up for gaps in your savings -- here's a list of items to check off when you're 10 years, five years and one year away from your expected retirement date."
|Five Retirement Risks and What to Do About Them |
May 11, 2021
" Low interest rates ...  Market volatility ...  Withdrawal timing and sequence of returns risk ...  Government policy uncertainty ...  Increasing longevity."
|A Tax-Savvy Approach to Help Make the Most Out of Your Retirement Income |
T. Rowe Price
Apr. 30, 2021
"Consider using your low tax bracket strategically by consistently 'filling up' that bracket with ordinary income from tax-deferred account distributions.... [T]hose who have a healthy portion of assets in taxable accounts may be better served by taking advantage of untaxed capital gains than by taking tax-deferred distributions to fill up ordinary income brackets."
|Retirement Plan Literacy for Participants: Spousal Consent |
Pension Rights Center
Apr. 29, 2021
"A plan participant cannot take any actions that would reduce their spouse's future survivor benefit without the spouse's consent. It is not uncommon, however, for spouses to give up the survivor benefit and later regret this decision."
|Retirement Plan Literacy: Answers to Common Employee Questions |
Pension Rights Center
Apr. 26, 2021
"I can't find the company I worked for many years ago. How can I locate the company to apply for my retirement benefit? ... My pension plan is offering me a lump sum payment. Should I take it instead of a lifetime monthly benefit?"
<< Older News | September 17, 2021