"While the statutory requirements take effect for taxable years beginning after December 31, 2023, the deadline for compliance with the Roth catch-up requirements is postponed to 2026 due to its administrative complexity. Plans are permitted to apply the proposed regulations in the meantime, and the IRS has designated 2024 and 2025 as an administrative transition period."  MORE >>

"Judge Kacsmaryk ... [affirmed] the validity of the most recent regulation on a fiduciary's consideration of non-pecuniary factors in making investment option decisions for a defined contribution pension plan. In so doing, he held that the regulation ... 'is not contrary to ERISA under a post-Chevron analysis.' Even more surprisingly, he criticized the challengers of the rule as embodying 'wooden textualism' and 'capriciousness' in 'demand[ing] arbitrary randomness' in choosing between equally advantageous investment options." [Utah v. Micone, No. 23-0016 (N.D. tex. Feb. 14, 2025]  MORE >>

"[W]hile employers have evaluated implementing guaranteed income options to their plans, just 17% say they are 'very' or 'extremely' likely to incorporate a solution within the next 12 to 18 months, either because they are already 'happy with their current plan design,' or due to low participant demand. Instead, plan sponsors say they are analyzing their investment lineups and considering changes like 'reducing or removing options, replacing managers, or adding options to their core menu.' "  MORE >>

"To track 'how DC participants are doing,' [these examples] focus on a participant who is 55 years old at the beginning of 2021, looking to retire at age 65. As of January 1, 2021, he had enough money -- $161,627 -- to buy a deferred-to-65 annuity of $1,000 per month. How has he done over the last four years, that is, since January 1, 2021?"  MORE >>

"Most people will receive their retroactive payment two to three weeks before they receive their notice in the mail.... Social Security is expediting payments using automation and will continue to handle many complex cases that must be done manually, on an individual case-by-case basis."  MORE >>

"The No. 1 source of untaxed benefits is health benefits. Retirement benefits are No. 2 ... An idea that does seem likely is opening up retirement accounts to alternative investments and cryptocurrency options. One of the fastest-growing classes of exchange-traded funds, crypto nonetheless remains a limited option in the 401(k) space."  MORE >>

"Retirement spending strategies typically balance two competing priorities: maximizing the retiree's spending or leaving a legacy. [Recent] research from Morningstar looks at a new metric -- the spending/ending ratio -- to help retirees assess how various retirement spending strategies balance those competing priorities. Flexible portfolio-spending strategies, delaying Social Security and purchasing annuities can help increase lifetime income while making less money available as a bequest."  MORE >>

"Employees can easily latch onto media-hyped, generalized one-size-fits-all numbers without a clear understanding of whether those figures align with their personal financial circumstances. The conversation around prudent retirement planning should begin with defining what it isn't: [1] A magic number ... [2] Determined by generic advice ... [3] a One and Done decision."  MORE >>

"As part of its review of a recent proposal, the Social Security actuaries provided another contribution to the extensive body of evidence showing that life expectancy is positively related to income and that the gap between those at the top and the bottom of the income distribution has increased over time. This pattern is of crucial importance when considering the progressivity of the Social Security program and any proposal to increase the program’s full retirement age."  MORE >>

"Alaska House Bill 78 would reopen the [DB] pension systems for new hires and allow all teachers and public workers currently in the [DC] plan to use their DC account balances to purchase past service in the DB pension plan.... Despite adjustments to retirement eligibility, this move could realistically add $11.4 billion in additional costs to future state budgets and reintroduce Alaska to ... the same risk that generated over $7.6 billion in state pension debt and spurred the 2005 pension reform that closed Alaska's DB pension plan to new hires in the first place."  MORE >>