Special 401(K)

Prepare your clients for upcoming 401(k) regulations | AccountingWEB.com

2011-08-17T09:42:00.000-04:00

Prepare your clients for upcoming 401(k) regulations | AccountingWEB.com: "A new regulation set forth by the Department of Labor (DOL) states that 401(k) plan vendors will have until April 1, 2012, to disclose fees to plan sponsors, while plan sponsors will have until May 31, 2012, to disclose fees to employees on their quarterly statements.

Fee disclosure is the jumping off point for the new regulations. In 2011, 2012, and 2013, your clients will need to react to several new initiatives."

Nasty tax surprise awaits many 401 (k) borrowers Money Markets And More - MarketWatch

2011-05-26T14:20:00.000-04:00

Nasty tax surprise awaits many 401 (k) borrowers Money Markets And More - MarketWatch: "Unemployed workers who borrowed from their 401 (k) plans could be hit with taxes and penalties if they can't pay when the loan comes due. Eva Rosenberg of TaxMama.com tells MarketWatch Radio's Adrienne Mitchell what to look out for."

Obama's State Dept. Removes Mother, Father From Passports

2011-01-11T15:46:00.000-05:00

Obama's State Dept. Removes Mother, Father From Passports: "In what seems to be a diplomatic effort at extreme political correctness and a nod to gay rights groups, the Obama administration is removing the words “mother” and “father” from U.S. passport applications and replacing them with “gender neutral” terminology. Mom and dad will now be referred to rather coldly as “parent one” and “parent two.”"

Op-Ed: The Next Government Takeover after Healthcare: Universal Retirement | St. Louis Globe-Democrat

2011-01-11T12:31:00.000-05:00

Op-Ed: The Next Government Takeover after Healthcare: Universal Retirement | St. Louis Globe-Democrat: "A Senior Fellow at the liberal Center for American Progress in January 2005, Sperling wrote in his article Progressive Framework for Social Security Reform that a Universal 401(k) “offers all Americans a private retirement account on top of Social Security, and uses government funds to match contributions made by middle income and lower-income workers.”

He argued “The Universal 401(k) would spread individual savings and wealth creation to tens of millions of American families currently falling through the cracks.”

In order to pay for spreading savings and wealth creation, Sperling proposed:"

Pension Plan Limitations for 2011 Announced

2010-11-02T15:00:00.000-04:00

Pension Plan Limitations for 2011 Announced: "The Internal Revenue Service (IRS) has announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for 2011 tax year. By and large, the limits will either be unchanged, or the inflation adjustments for 2011 will be small."

Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs , page 3

2010-11-02T10:12:00.000-04:00

Democratic leaders in the U.S. House discuss confiscating 401(k)s, IRAs , page 3: "The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers’ retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration."

News from The Associated Press

2010-09-21T11:55:00.000-04:00

News from The Associated Press: "House Republicans plan to unveil a roughly 20-point agenda Thursday, less than six weeks before midterm congressional elections in which they're favored to add substantially to their ranks - and possibly cost Democrats control of the chamber."

GOPUSA � The Loft � Message to Obama: I'm Exhausted Too!

2010-09-21T10:30:00.000-04:00

GOPUSA � The Loft � Message to Obama: I'm Exhausted Too!: "The more Barack Obama talks, the more is revealed about his attitudes toward America, capitalism, free enterprise, and the American dream. Under Obama, if you strive to do well, your reward is to pay for the massive cost of government. You cannot create new jobs, because Obama needs your money to feed his government machine. You cannot run your business as you see fit, because Obama is taking control of industry after industry."

Will The Government Nationalize Your Retirement Funds ?

2010-09-21T10:01:00.000-04:00

Will The Government Nationalize Your Retirement Funds ?: "It's no secret that Obama Hood and his band of merry liberals want to redistribute wealth and centralize power in this country (but don't call them socalists !). They don't trust the American people to handle their own money properly. They view the American people as too ignorant to be trusted with much of anything, and besides, in Liberal La La Land, your wages really belong to the government in the first place. That's why liberals refer to things like tax cuts as 'government spending.' Liberals say things like 'why should the government spend $700 billion on tax cuts for the wealthy ?,' as if a person's wages belong to Obama and company instead of to the person who earned those wages. And never mind that the wealthy already pay the highest taxes in the country by far. If you point that out to liberals, they will start reminiscing fondly about the 'good old days,' when the highest marginal tax rate was over 90% here in the land of the free-up-to-a-point-to-be-determined-by-liberal-wealth-confiscaters. In true Orwellian fashion, liberals call such discriminatory theft 'fairness.'"

Locking In Income for a Lifetime - WSJ.com

2010-09-01T16:23:00.000-04:00

Locking In Income for a Lifetime - WSJ.com: "To reduce that risk, the Obama administration wants to prod workers into investing in lifetime-income products such as annuities, insurance contracts that function like pensions by paying a guaranteed monthly income in return for a big chunk of cash upfront.

This year, the Labor and Treasury departments asked for comments on steps the government could take to steer workers into annuities. One suggestion would require that part of an employee's 401(k) plan contributions be placed in an annuity that would automatically start providing income at retirement, unless the worker opts out."

Government wants your 401(k)

2010-08-31T09:44:00.000-04:00

Government wants your 401(k): "The Obama administration appears to be proceeding with a novel way of financing trillion-dollar budget deficits by forcing IRA and 401(k) holders to buy Treasury bonds by mandating the placement of government-structured annuities in their investment accounts.

The requirement to invest private retirement assets has been cleverly buried within plans to create 'automatic IRAs' that would mandate employer groups enroll all employees in 401(k) or IRA plans."

Withdrawals from retirement plans escalating | Minneapolis and St. Paul | kare11.com

2010-08-26T10:03:00.000-04:00

Withdrawals from retirement plans escalating | Minneapolis and St. Paul | kare11.com: "Recent financial headlines have touted the improving trend of companies restoring their 401(k) matches to employees. While that is great news, thousands of American's are still struggling to make ends meet. The number of workers tapping their retirement plans continues to increase, according to a new report by Fidelity Investments."

GOPUSA � Commentary � Sherline: Privatizing Social Security

2010-08-26T10:01:00.000-04:00

GOPUSA � Commentary � Sherline: Privatizing Social Security: "The best answer to reforming the Social Security system is to wean it off the government dole by allowing people to set aside at least some portion of their payroll taxes in personal investment accounts for their own retirement. This has been done with considerable success in Chile, where the CATO Institute reported that during the first 22 years of their program, the rate of return 'was an astonishing 10 percent above inflation.' (Economist Estelle James Examines Chile's Pension System, February 25, 2005)."

Commentary: Market crash reveals flaws in 401(k) retirement system – North San Francisco Bay Area, Sonoma, Marin, Napa counties - North Bay Business Journal - Archive

2010-07-19T09:51:00.000-04:00

Commentary: Market crash reveals flaws in 401(k) retirement system – North San Francisco Bay Area, Sonoma, Marin, Napa counties - North Bay Business Journal - Archive: "A number of studies done by life insurance companies only confirm and quantify the obvious – baby boomers of all ages believe there is a retirement crisis in America. Although the real estate and stock market crashes of the last few years brought the problem into the open, this malaise had been bubbling under the surface for quite some time.

Today, let’s review how we got here, where we went wrong and, most importantly, what we are able to do in order to get our retirement plans back on track."

Frazier: Ignore the 'Experts,' Stocks Poised to Plunge

2010-07-06T15:15:00.000-04:00

Frazier: Ignore the 'Experts,' Stocks Poised to Plunge: "The weak economy will push U.S. stocks lower — perhaps substantially lower — in the weeks ahead, says David Frazier, editor of Newsmax newsletter The ETF Strategist.

Aggressive investors can take advantage of this move by purchasing inverse equity ETFs (exchange-traded funds), he told Newsmax.TV Money. These are funds whose share prices rise as stocks fall.

Conservative investors, meanwhile, should shift their holdings to cash, Frazier says."

Morning Bell: Unions Just Flushed $5 Million of Your Tax Dollars Down the Toilet | The Foundry: Conservative Policy News.

2010-06-09T14:34:00.000-04:00

Morning Bell: Unions Just Flushed $5 Million of Your Tax Dollars Down the Toilet | The Foundry: Conservative Policy News.: "It is not every day we get to agree with the Obama administration. But after Sen. Blanche Lincoln defeated Lieutenant Governor Bill Halter in the Arkansas Democratic Senate primary runoff election, after the AFL-CIO, SEIU, AFSCME poured millions of dollars into Halter’s campaign, a senior White House official told Politico: “Organized labor just flushed $10 million of their members’ money down the toilet.” But it wasn’t just “their members” money that those unions were wasting. This year the Bureau of Labor Statistics confirmed that for the first time in the history of the United States, a majority of union members work for the government, not the private sector. To be exact, 52% of all union members work for the federal or state and local governments. That means more than half of the $10 million that unions wasted just in Arkansas first came from your tax dollars. And the waste goes well beyond Arkansas."

Administration Advances Plan to Federalize Private Pension System - State - News : Lincoln Tribune : Instant, reliable and credible local news.

2010-06-08T13:53:00.000-04:00

Administration Advances Plan to Federalize Private Pension System - State - News : Lincoln Tribune : Instant, reliable and credible local news.: "In February, the U.S. Treasury and Labor departments jointly announced they were seeking public comment on proposed design changes to employer-sponsored 401(k) plans and individual retirement accounts that would centralize the private pension system under structures created and administered by the government."

Will The Government Eventually Appropriate Your IRA Or 401(k)? | Daily Markets

2010-06-07T22:33:00.000-04:00

Will The Government Eventually Appropriate Your IRA Or 401(k)? | Daily Markets: "Will the laws and rules in place to protect individuals in their attempt to set something aside for retirement be safeguarded by the representatives elected to advocate for them in Washington? Will the principles and moral integrity of the political class keep them from appropriating the trillions of dollars held in 401k’s and IRA’s? I’m not so sure!

While the answer is most likely yes, when one realizes the magnitude of the financial predicament the U.S. might well find itself in shortly, it is indeed, conceivable that such an appropriation of private retirement accounts might prove to be too compelling for most politicians to resist."

New Rules Encourage Employees To Diversify 401(k) Savings - WSJ.com

2010-05-19T16:33:00.000-04:00

New Rules Encourage Employees To Diversify 401(k) Savings - WSJ.com: "New rules designed to help employees avoid being stuck with too much of their own company's stock were issued Wednesday by the Internal Revenue Service.

Under the regulations, 401(k) plans and employee stock-ownership plans within 401(k)s must allow plan participants to sell company stock and reinvest the assets at 'periodic, reasonable opportunities,' and no less often than quarterly."

Investment Guru Russell: Stocks Risk Meltdown

2010-05-19T16:17:00.000-04:00

Investment Guru Russell: Stocks Risk Meltdown: "The May 7 low for the Dow industrials was 10,221, about 1.5 percent below recent levels.

And the low for the transportation average was 4,243, about 1.4 percent below recent levels.

“If I read the stock market correctly, it’s telling me that there is a surprise ahead,” Russell wrote. “And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead.”

Russell, 85, has put out his newsletter every three weeks for 52 years."

GOP, Dems clash over modifying 401(k) plans - SFGate

2010-05-19T11:15:00.001-04:00

GOP, Dems clash over modifying 401(k) plans - SFGate: "The 401(k) plan has become a political football.

Some Republicans have created a mashup of ideas leaving the impression the federal government wants to take over your 401(k) account. Democrats deny that notion.

'Republican claims are pure fantasy. It's like saying we want to put unicorns on the endangered species list,' says Aaron Albright, press secretary for the House Committee on Education and Labor, chaired by Rep. George Miller, D-Martinez."

Mad About 401(k) Annuities | Retirement Income Journal - The information forum of the decumulation industry.

2010-05-19T11:15:00.000-04:00

Mad About 401(k) Annuities | Retirement Income Journal - The information forum of the decumulation industry.: "Scores of blunt, angry e-mails warning the government to “keep its hands off my hard-earned money” began arriving in the Department of Labor's email box last February after the DoL issued its Request for Information (RFI) about encouraging the inclusion of annuities as distribution options in 401(k) plans."

Government gets an earful on 401(k) proposal - Personal finance- msnbc.com

2010-05-18T16:00:00.000-04:00

Government gets an earful on 401(k) proposal - Personal finance- msnbc.com: "What happens when the government considers tinkering with retirement accounts and asks for citizen input?

It gets plenty.

Government officials began seeking comments in February on a proposal to add an annuity option to retirement plans. Such an option would potentially turn a portion of a retiree's savings over to an insurance company in exchange for a monthly check."

Lexology - IRS asking employers to answer 401(k) questionnaire

2010-05-12T12:27:00.000-04:00

Lexology - IRS asking employers to answer 401(k) questionnaire: "The IRS announced last week that it will be looking at 1,200 401(k) plans by way of a plan compliance questionnaire."

Your retirement savings may be next

2010-05-12T08:34:00.000-04:00

Your retirement savings may be next: "Could� the Democrats in Congress actually be considering confiscating all 401(k), SEP and IRA accounts in exchange for offering Americans a 'guaranteed annuity'?

The� subject almost seems too far out there to even write about. While it is something that I had heard rumors of, I just couldn't believe this type of proposal would ever be considered in America. Let� alone become part of an active public policy debate."

The Signal - Santa Clarita Valley News - House Republicans send letter regarding 'GRAs'

2010-05-10T14:07:00.000-04:00

The Signal - Santa Clarita Valley News - House Republicans send letter regarding 'GRAs': "Rep. Howard P. 'Buck' McKeon (R-Santa Clarita) and members of the House GOP Savings Recovery Solutions Group, including House Minority Leader John Boehner, sent�this letter to Labor Secretary Hilda Solis and Treasury Secretary Timothy Geithner regarding proposed 'Guaranteed Retirement Accounts' (GRAs)�on Monday, May 3."

Get Ready For Obama's Next Target - Your 401(k) :: Political News and commentaries :: Hyscience

2010-05-06T10:46:00.000-04:00

Get Ready For Obama's Next Target - Your 401(k) :: Political News and commentaries :: Hyscience: "First it was the banks, then the insurance companies, then the auto industry, then healthcare, and now, if this article is accurate, the piece de resistance - the private savings accounts of millions of middle-class Americans - your 401(k):"

Will New Rules Lead To Better Or Less 401(k) Advice? - Forbes.com

2010-05-06T09:26:00.000-04:00

Will New Rules Lead To Better Or Less 401(k) Advice? - Forbes.com: "There's an obscure battle raging in Washington that could have a big effect on how you invest for retirement. Officials at the Department of Labor have proposed new regulations that they say will protect 401(k) participants and Individual Retirement Account holders from greedy advisors who have conflicts of interest. But some financial industry participants insist the rules will backfire, leaving employees with less or incomplete advice."

Obama Administration Plans to Seize 401(k) Retirement Accounts

2010-05-05T14:58:00.000-04:00

Obama Administration Plans to Seize 401(k) Retirement Accounts: "The upshot of that clunky prose is that the Obama administration believes that employers cannot be relied upon to adequately manage the 401(k) retirement accounts it provides for their employees, therefore the federal government will relieve them of that responsibility and take sole discretionary control of those funds, thus eliminating the risk of mismanagement. In other words, the Obama administration is planning to divert the “stream of income after retirement” and channel it right through Washington, D.C.�"

Republicans Warn Against Changes to 401(K) Policy - WSJ.com

2010-05-04T17:05:00.000-04:00

Republicans Warn Against Changes to 401(K) Policy - WSJ.com: "Republican lawmakers in the U.S. House of Representatives on Tuesday warned the Obama administration not to adopt any policies that could modify tax breaks generally provided to 401(k)-type plans.

The Treasury and Labor departments, in February, issued a 'request for information,' seeking input on 'arrangements designed to provide a lifetime stream of income after retirement.' That phrasing has been interpreted by some observers to mean a conversion to 'guaranteed retirement accounts' from defined-contribution plans, such as 401(k)s.

Republican lawmakers are concerned that implementation of some sort of guaranteed retirement accounts could mean that tax breaks on 401(k)-type plans would be ..."

Republicans Sound Alarm on Administration Plan to Seize 401(k)s - HUMAN EVENTS

2010-05-04T01:22:00.000-04:00

Republicans Sound Alarm on Administration Plan to Seize 401(k)s - HUMAN EVENTS: "In February, the White House released its “Annual Report on the Middle Class” containing new regulations favored by Big Labor including a bailout of critically underfunded union pension plans through “retirement security” options.

The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement -- which lets them off the hook for their collapsing retirement scheme.� And, of course, the Obama administration is eager to accommodate their buddies.

Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts” (GRAs), in the February “Middle Class” report.�"

Bend Over America: Now The SEIU Wants Your 401k! | iStockAnalyst.com

2010-03-26T14:17:00.001-04:00

Bend Over America: Now The SEIU Wants Your 401k! | iStockAnalyst.com: "Having ruined the pension funds of Americans nationally through corrupt and utterly unsustainable 'projections' of future growth labor unions are now targeting your money to make up the difference:
One of the nation's largest labor unions, the Service Employees International Union (SEIU), is promoting a plan that will centralize all retirement plans for American workers, including private 401(k) plans, under one new 'retirement system' for the United States."

New U.S. retirement plan rules could hit brokers | Reuters

2010-03-26T14:17:00.000-04:00

New U.S. retirement plan rules could hit brokers | Reuters: "Proposed regulations that restrict how financial advisers can work with company retirement plans could send brokers advising small businesses scuttling out of the market."

Obama ally targets 401(k) dollars

2010-03-26T12:09:00.000-04:00

Obama ally targets 401(k) dollars: "A key labor union ally of the Obama administration has mounted an effort to create government-mandated worker retirement accounts as an entitlement program, with the possibility that a portion of all private retirement funds could be forced into U.S. Treasury debt."

Vox Popoli: Adios 401k

2010-03-25T16:21:00.000-04:00

Vox Popoli: Adios 401k: "With all of the unfunded public pension liabilities that are so rapidly accruing, there is virtually no chance that the federal government isn't going to transform the 401k plan into a centralized pay-out-as-needed one like Social Security:"

Unions Want to Take Over Your 401(k) | Before It's News

2010-03-25T01:32:00.000-04:00

Unions Want to Take Over Your 401(k) | Before It's News: "One of the nation's largest labor unions, the Service Employees International Union (SEIU), is promoting a plan that will centralize all retirement plans for American workers, including private 401(k) plans, under one new 'retirement system' for the United States.

In effect, government pensions for everyone, not unlike the European system and regardless of personal choice."

ETFs Slowly but Surely Replacing Mutual Funds in 401(k)s | ETF Trends

2010-03-24T10:28:00.000-04:00

ETFs Slowly but Surely Replacing Mutual Funds in 401(k)s | ETF Trends: "The exchange traded fund (ETF) industry has long lusted after the prospect of being a standard component of 401(k) plans. While it’s making some serious headway, one provider in particular is leading the charge and having an impact."

>>Obama’s Ponzi Scheme with your 401k. Believe it! � And So I Go: Yesterday, Today and Tomorrow

2010-03-10T10:55:00.000-05:00

>>Obama’s Ponzi Scheme with your 401k. Believe it! � And So I Go: Yesterday, Today and Tomorrow: "It’s coming� people.� Obama is about to grab your hard earned savings in your 401k and IRA.�� For this your federal government will hand you a promise to give this all back to you in monthly installments for your retirement years.� The federal government has done such a great job with Social Security, Medicare, and the Post Office� that they want you to have faith�� they can do better with your savings than you can yourself."

� Don’t Let Obama Steal Your IRA Or 401K DonStorch.com: Columns/Opinion/Satire

2010-03-08T09:24:00.000-05:00

� Don’t Let Obama Steal Your IRA Or 401K DonStorch.com: Columns/Opinion/Satire: "I made a conscious decision some time ago to get out of all U.S Treasury bonds and not to buy any more because America is on its way to bankruptcy.� The time will come when the United States will not be able to sell its debt on the open market.� And, that’s when President Obama will target seniors and attempt to steal their 401K’s through a mandatory program of investing their savings in U.S. Treasury bonds.

You already have that option, but the plan in the works would mandate a government plan for your retirement savings."

Don’t Put Your IRA in A Variable Annuity

2010-03-01T13:24:00.000-05:00

Don’t Put Your IRA in A Variable Annuity: "If you’ve talked to a broker or agent about rolling over your retirement account, there’s a good chance the advisor recommended you invest in a Variable Annuity. Don’t do it! I believe the only reason a variable annuity is recommended for an IRA is so the advisor can earn more money. Let me explain."

Are New Roth IRA Conversion Rules Meant To Be A Short Term Fix For Government Funding? | 20s Money

2010-02-23T13:10:00.000-05:00

Are New Roth IRA Conversion Rules Meant To Be A Short Term Fix For Government Funding? | 20s Money: "Government has loosened the rules making it possible for more people to convert their traditional IRAs and 401(k) funds into Roth IRAs.� This conversion essentially means you can pay taxes on the amount then convert it and not pay taxes on it again.

It seems to me that our sly politicians have found a way to boost the revenues for government in the short term.� Since the short term is all that matters when you’re a politician, why wouldn’t you want more Roth IRA conversions?� This doesn’t mean that it is a good thing for you and your money, but it’s surely a good thing for current politicians."

Too many cashing out of 401(k)s

2010-02-22T18:35:00.000-05:00

Too many cashing out of 401(k)s: "Millions of Americans who lost their jobs during the recession are faced with the likelihood of being out of work for a long period of time, as the unemployment rate shows little sign of improving soon. Strapped for cash, many are tempted to tap into their 401(k) retirement accounts."

Are they coming for our 401(k)s?

2010-02-04T13:45:00.000-05:00

Are they coming for our 401(k)s?: "Zerohedge is panicked that the Treasury wants to take away your 401(k) and instead give you an annuity following a lifetime of contributions. While the document they link to is somewhat more benign that Tyler suggests, it's more an dmore looking like the government wants to help us not make bad choices."

Examining the Impact of Obama's IRA Plan - Financial Planning

2010-02-02T15:55:00.000-05:00

Examining the Impact of Obama's IRA Plan - Financial Planning: "With retirement savings dwindling President Obama has proposed as part of the 2011 budget proposal for workers to be automatically enrolled in individual retirement accounts."

Why the U.S. Government Wants to Hijack Your 401(K)

2010-02-01T13:34:00.000-05:00

Why the U.S. Government Wants to Hijack Your 401(K): "It's bad enough that we've been forced to bail out Wall Street, but now the Obama administration is hatching plans to raid our retirement savings too.

Both the U.S. Treasury Department and the Department of Labor plan are planning to stage a public-comment period before implementing regulations that would require U.S. savers to invest portions of their 401(k) savings plans and Individual Retirement Accounts (IRAs) into annuities or other 'steady' payment streams backed by U.S. government bonds.�

With $14 trillion fiscal hangover looming, the Treasury can no longer count countries such as Japan and China to be dependable buyers of U.S. government debt. Not only have those nations dramatically reduced their purchasing of U.S. bonds, most of our largest creditors are now actively diversifying their reserves away from greenback-based investments in favor of other reliable stores of value - like crude oil, gold and other commodities."

Survey: 84% Would Welcome Fully Automated 401(k) Plans - Bank Investment Consultant

2010-01-29T11:10:00.000-05:00

Survey: 84% Would Welcome Fully Automated 401(k) Plans - Bank Investment Consultant: "The Recession has prompted an overwhelming majority of American workers to believe it’s time for a new and improved model for workplace retirement programs, Prudential Financial [PRU] found in a survey.

Prudential’s sixth “Workplace Report on Retirement Planning” found that 84% would embrace a fresh approach to their workplace retirement plans, particularly more “autopilot” features."

Government to fund federal debt through 401K/IRA accounts?

2010-01-27T21:27:00.000-05:00

Government to fund federal debt through 401K/IRA accounts?: "'Bloomberg reported Friday that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity.'"

The Government Wants to Hijack Your 401(k)

2010-01-27T09:39:00.000-05:00

The Government Wants to Hijack Your 401(k): "The upshot: The Obama administration has to find other ways sell government debt - without raising interest rates, a move that would almost certainly jeopardize the country's super-weak economic recovery.

Facing an uphill battle and increasingly skeptical buyers, the government is changing tactics and targeting the biggest pile of money available as a means of dealing with its fiscal follies - the $3.6 trillion sitting in U.S. retirement plans, including 401(k) plans."

The Government Wants to Hijack Your 401(k)

2010-01-27T09:38:00.000-05:00

The Government Wants to Hijack Your 401(k): "According to widespread media reports, both the U.S. Treasury Department and the Department of Labor plan are planning to stage a public-comment period before implementing regulations that would require U.S. savers to invest portions of their 401(k) savings plans and Individual Retirement Accounts (IRAs) into annuities or other 'steady' payment streams backed by U.S. government bonds."

How Washington Might Change Your 401(k)

2010-01-25T12:53:00.000-05:00

How Washington Might Change Your 401(k): "There's always room for improvement -- especially when it comes to your 401(k). After 2008, during which many American workers saw the value of their retirement accounts plunge 40% or more, even these terrific plans could probably benefit from a few reforms. With that in mind, Congress is considering changes to the rules that govern 401(k)s. We've rounded up a few of the ideas they've put on the table thus far."

Obama "Going After Wall Street".. Watch your 401K - Auburn Journal

2010-01-25T09:37:00.000-05:00

Obama "Going After Wall Street".. Watch your 401K - Auburn Journal: "Obama is coming for your 401K fund next. Once the crisis in the stock market is clear, he will start talking about a 'NEW Social Security System' where your retirement will be pulled from your check directly (More than the current SSI) and the government will take care of you."

Bloomberg: Obama Administration Looks to Annuities to Improve on 401ks | Benzinga.com

2010-01-20T11:16:00.000-05:00

Bloomberg: Obama Administration Looks to Annuities to Improve on 401ks | Benzinga.com: "What is old is new again..."

Government wants to urge you to loan them your 401(k)

2010-01-19T07:10:00.000-05:00

Government wants to urge you to loan them your 401(k): "There literally isn’t enough money in the world to float the T-notes the Treasury must issue in order to prop up our unsustainable spending path. There are, however, about $3.6 trillion in funds just sitting in 401(k) accounts. If the government can urge–or force–you to convert your 401(k) into T-note funded annuities, the Treasury can continue to issue those notes to float the government’s deficit. Essentially, you’ll be converting your retirement funds into an IOU from the government…just like your social security account has already done.
This will allow the Treasury to keep borrowing money–from your retirement–in order to keep issuing more debt that they may or may not be able to pay back to you."

Will the Feds Fund Deficits with 401(k)s?

2010-01-19T07:09:00.000-05:00

Will the Feds Fund Deficits with 401(k)s?: "The writing is on the wall for retirement assets held in conventional ways. A report last week in Business Week shows that the U.S. Feds have 401(k) assets in their sites."

Will the Feds Fund Deficits with 401(k)s? | Before It's News

2010-01-18T15:13:00.000-05:00

Will the Feds Fund Deficits with 401(k)s? | Before It's News: "The writing is on the wall for retirement assets held in conventional ways. A report last week in Business Week shows that the U.S. Feds have 401(k) assets in their sites.

'The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

'Annuities generally guarantee income until the retiree’s death, and often that of a surviving spouse as well. They are designed to protect against the risk that retirees outlive their savings, a danger made clear by market losses suffered by older Americans over the last year, David Certner, legislative counsel for AARP, said in an interview.'

Now ostensibly, the plan to offer an annuity option for 401(k) plans will seem sensible. But don’t be fooled."

Pajamas Media � Coming Soon: Substituting Government Annuities for Your 401(k)?

2010-01-15T10:31:00.000-05:00

Pajamas Media � Coming Soon: Substituting Government Annuities for Your 401(k)?: "Back around the last Election Day, far-left Congressmen George Miller and Jim McDermott floated the idea of ending the 401(k) tax break in favor of “redirecting those tax breaks to a new system of guaranteed retirement accounts to which all workers would be obliged to contribute.”

The left has always hated private retirement accounts. First of all, they’re, you know, private, meaning the government doesn’t control them, and we can’t have that. Worse still, people with individual accounts aren’t beholden to a union for their retirement — although what good that does anybody who worked for a company that’s gone broke, for instance Pan Am, is a question never really answered by old-fashioned pension advocates."

WyBlog -- Obama's secret plan to nationalize your 401(k) and IRA

2010-01-14T09:45:00.001-05:00

WyBlog -- Obama's secret plan to nationalize your 401(k) and IRA: "Obama's secret plan to nationalize your 401(k) and IRA
What if you woke up tomorrow morning and discovered that your 401(k) or IRA only offered one investment option, and that investment option was U.S. Treasury Bonds? Think it can't happen? Then you don't know how desperate Obama and Geithner are to prop up the Treasury securities market.

In a short conversation this noontime that CNBC apparently has omitted from their archives (Why's that folks?) Rick Santelli was talking about a potential to effectively force money into the Treasury market.

Where would they get this?

From your 401k and IRA accounts!"

Why Is Your 401(k) In Trouble? Because You Don’t Have Time To Read This Post - CBS MoneyWatch.com

2010-01-14T09:45:00.000-05:00

Why Is Your 401(k) In Trouble? Because You Don’t Have Time To Read This Post - CBS MoneyWatch.com: "The average American multitasker is way too busy and stressed for DIY retirement investing.� This is not something you can do instead of texting while you’re bumper-to-bumper on the freeway. Talk about safety! What’s at stake? Your life, health, and happiness in the last, oh, 20 to 40 years of your life.

The White House has 401(k) relief high on its priority list for 2010. Among the questions raised: Should the 401(k) itself be retired? Should we have opt-in or opt-out?� Can we go back to the pension model - or something with more security?"

Americans Stand by 401(k) Plans, Survey Says | Retirement | Financial Articles & Investing News | TheStreet.com

2010-01-13T11:38:00.000-05:00

Americans Stand by 401(k) Plans, Survey Says | Retirement | Financial Articles & Investing News | TheStreet.com: "Despite the recession that started in late 2007 and continued through most of 2009, Americans still have confidence in their retirement plans and investment options, according to a recent survey by the Investment Company Institute (ICI).
The ICI, the trade group of the money management industry, surveyed 3,000 households and found that, among households expressing an opinion about retirement plans, 90% had a favorable view. The organization's survey comes as the Obama administration discusses ways to encourage people to shift from 401(k) to annuities so that they don't outlive their retirement savings. The ICI opposes the notion, which could hurt revenue at mutual fund companies."

InvestorCentric: Could The Government Take Away Individual Control of 401(k) Savings?

2010-01-13T09:38:00.000-05:00

InvestorCentric: Could The Government Take Away Individual Control of 401(k) Savings?: "A government proposal would take away some control of 401(k) by requiring retirees to convert some of their savings to annuities although 70% of US households oppose it. Whether this controversial plan would give retirees the hoped for security is however doubtful. See the following post from Expected Returns."

Americans Oppose Proposals to Limit 401(k)s, ICI Says at The Catherine Austin Fitts Blog

2010-01-12T21:44:00.000-05:00

Americans Oppose Proposals to Limit 401(k)s, ICI Says at The Catherine Austin Fitts Blog: "U.S. investors oppose federal initiatives that would force them to give up control over their 401(k) accounts, the Investment Company Institute said.

Seven in 10 U.S. households object to the idea of the government requiring retirees to convert part of their savings into annuities guaranteeing lifetime payments, according to an institute-funded report today. The Washington-based institute represents the mutual-fund industry.

“People value the tool of the 401(k),” Paul Schott Stevens, chief executive officer of the institute, said at a news conference in Washington. “They do not want government to take it away from them. They think the structure works very effectively.”"

Obama Administration Wants to Annuitize 401k’s and IRA’s - Mandatory “R Bonds” at The Catherine Austin Fitts Blog

2010-01-12T21:43:00.001-05:00

Obama Administration Wants to Annuitize 401k’s and IRA’s - Mandatory “R Bonds” at The Catherine Austin Fitts Blog: "As a rule of thumb, the worst possible time to convert lump sum savings into a fixed income annuity would be when interest rates are historically low.

Although products may vary, this is roughly equivalent to buying long term bonds at a time when interest rates are likely to increase, substantially reducing your principal in real terms, and eroding your fixed returns through inflation.

For some reason the Obama Administration is promoting the idea now that there should be some encouragement for Americans to start converting their 401K’s and IRA’s into annuities, to provide themselves with lifetime income."

401k/IRA’s: Is Confiscation in the Wind? at The Catherine Austin Fitts Blog

2010-01-12T21:43:00.000-05:00

401k/IRA’s: Is Confiscation in the Wind? at The Catherine Austin Fitts Blog: "The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

Let me tell you what this is - it is an attempt to prevent the collapse of the Treasury market!"

Obama Administration Wants to Annuitize 401k's and IRA's - Mandatory "R Bonds" | Before It's News

2010-01-12T17:04:00.000-05:00

Obama Administration Wants to Annuitize 401k's and IRA's - Mandatory "R Bonds" | Before It's News: "For some reason the Obama Administration is promoting the idea now that there should be some encouragement for Americans to start converting their 401K's and IRA's into annuities, to provide themselves with lifetime income.

The effort is being spear-headed by Mark Iwry of the Treasury and Phyllis Borzi of the Department of Labor. Here is�a paper written on the subject�by Mark Iwry when he was at the Brookings Institution.

The essence of this paper is that distributions from IRA's and 401K's would automatically be rolled into an annuity providing a monthly income by default.

This concept is known on the Street as the handling fees for meager returns pork barrel pigfest. The Fed likes it because they will undoubtedly get a two year rolling chunk of the people's retirement cash to play with."

Should annuities be mandatory for 401(k)s? Fund companies go on the offensive - Investment News

2010-01-11T08:59:00.000-05:00

Should annuities be mandatory for 401(k)s? Fund companies go on the offensive - Investment News: "Participants in 401(k) plans do not want the government to require them to convert a portion of their 401(k) assets to annuities, according to the results of a survey of about 3,000 households released today by the Investment Company Institute."

Government Wants Retirees to Convert 401 (k) Into Annuities

2010-01-11T08:58:00.000-05:00

Government Wants Retirees to Convert 401 (k) Into Annuities: "U.S. investors oppose federal initiatives that would force them to give up control over their 401(k) accounts, the Investment Company Institute said.
Seven in 10 U.S. households object to the idea of the government requiring retirees to convert part of their savings into annuities guaranteeing a steady payment for life, according to an institute-funded report today."

Moneynews - Buffett Stuffing His Portfolio With Retail Stocks

2009-12-30T12:06:00.000-05:00

Moneynews - Buffett Stuffing His Portfolio With Retail Stocks: "Warren Buffett is boosting his portfolio with retail stocks, MSN reports.

Buffett would likely recommend investors buy retail stocks for 2010, Michael Brush of MSN reported.

During the third quarter, Buffett increased his position in Wal-Mart by 19.9 million shares.

“Buffett is the consummate contrarian, and the retail sector is one of the few areas where you can still be contrarian after a market rally that's lifted most stocks this year,” said Brush, author of 'Lessons from the Front Line.”"

Moneynews - Investors Flock to Inflation Hedges

2009-12-16T13:30:00.000-05:00

Moneynews - Investors Flock to Inflation Hedges: "Investors are pouring money into mutual funds and exchange traded funds that hold inflation-protected bonds and commodities as protection against inflation.

The worry is that the massive fiscal and monetary stimulus implemented to fight the recession won’t be withdrawn quickly enough to avoid a jump in inflation.

In November alone, investors allocated $3.9 billion to commodity-related mutual funds and ETFs and $2 billion to mutual funds holding inflation-protected bonds, according to research firm Morningstar.

Even stock funds are seeking hedges against inflation, putting money into basic materials companies and companies that can raise prices."

Obama’s IRA Proposal: How to Make It Better - CBS MoneyWatch.com

2009-12-16T12:33:00.000-05:00

Obama’s IRA Proposal: How to Make It Better - CBS MoneyWatch.com: "Tucked into the Obama financial reform package�is a proposal to�automatically enroll employees in IRAs if their employer doesn’t have�a retirement plan. It’s a good�idea, but it can be improved by equalizing the IRA and 401(k) contribution limits and removing the employer mandate from the plan."

The Associated Press: New and improved 401(k) a possibility in 2010

2009-12-09T13:04:00.000-05:00

The Associated Press: New and improved 401(k) a possibility in 2010: "When the stock market hit its all-time high in October 2007, few investors questioned the merits of their 401(k) plan. Two years later, their feelings are different.
As many investors continue to nurse the wounds of losing more than a third of their retirement savings, many question if there isn't a fundamental flaw in 401(k) plans. Should the system be scrapped and replaced with something without all the risk?
Though the volume of the calls for change have quieted a bit as the stock market soared about 60 percent since March, legions of investors remain anxious their 401(k) might them down again.
There are several ideas floating around Congress that include increased disclosure of fees in mutual funds and new regulations about 401(k) investment advice."

Washington Goes into 401(k) Withdrawal - CBS MoneyWatch.com

2009-12-09T10:00:00.001-05:00

Washington Goes into 401(k) Withdrawal - CBS MoneyWatch.com: "The Obama Administration has decided we are going to make a mess of managing our 401(k)s in retirement and wants to do something about it. Both the Treasury Department and the Labor Department have signaled their 2010 agendas will include taking a look at how to reform the 401(k) withdrawal process to keep us from blowing through our savings too fast.

The Feds are interested in adding an annuity feature to 401(k)s that would throw off a guaranteed monthly income for retirees based on the amount of 401(k) assets a retiree converts into the annuity.

Given the well documented problems we have had managing our accounts while we are working — in large part due to poorly designed plans foisted on us — it’s a reasonable concern that we won’t be able to get the decumulation phase right either."

Washington Goes into 401(k) Withdrawal - CBS MoneyWatch.com

2009-12-09T10:00:00.000-05:00

11% of wealthy stop 401(k) contributions

2009-07-02T16:49:00.001-04:00

leven percent of wealthy individuals surveyed by Phoenix Cos. have stopped contributing to their 401(k) plans, and 8% said their spouses or partners have done the same.

Nearly one-third of high-net-worth individuals — defined by Phoenix in the Phoenix Wealth Survey as having more than $1 million in assets, minus their primary residences — reported making changes to their 401(k) plans, the survey found. Five percent said they have reduced their contributions, and 5% said their spouses or partners had cut their contribution levels.

“The current crisis has rocked this segment of the market like it never has,” Walter Zultowski, senior vice president, research and concept development at Phoenix, said in an interview. “In the past, high-net-worth individuals have been very resilient. It's different this time.”

When you should ditch your 401k

2009-06-09T12:32:00.001-04:00

Eight months ago, long before it went into Chapter 11, General Motors stopped matching workers' contributions to 401k retirement plans. Since then, one-fifth of U.S. employers have done likewise or at least reduced the amount of their matches, according to a survey by consulting company Watson Wyatt.
If your employer is one of these, it's time to consider shooting a sacred cow -- by dropping out of the 401k system.

FinCEN Moves to Streamline Mutual Fund BSA Requirements Proposal Would Require Mutual Funds to File CTRs

2009-06-05T16:31:00.001-04:00

The Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) that would replace a mutual fund requirement to file IRS/FinCEN Form 8300 - Report of Cash Payments Over $10,000 Received in a Trade or Business - with a requirement to file FinCEN Form 104, Currency Transaction Report (CTR), which is standard for financial institutions. Both forms document a transaction in currency above $10,000, but differ in some technical aspects.

"If adopted this proposal will bring the mutual fund industry into greater conformity with the rest of the financial industry, which currently files CTRs," said FinCEN Director James H. Freis, Jr. "The proposal would also free mutual funds from having to report applicable transactions involving certain negotiable instruments by moving to the CTR filing requirement and reduce paperwork for mutual funds and help FinCEN more directly identify suspicious activity involving money laundering and fraud."

Tips to Keep Your 401(k) Plan on Track - 5/19/2009 - insurancenewsnet.com

2009-05-19T16:55:00.000-04:00

Tips to Keep Your 401(k) Plan on Track - 5/19/2009 - insurancenewsnet.com: "Main article

401(k) plans took a beating in 2008, and 2009 is proving that the bad times aren't over yet. Looking forward, there are several issues plan sponsors need to address in reviewing their plans, from the plan's governance to the choices of a low-risk investment option.

'Plan sponsors face many challenges in developing a well-structured DC plan to help meet the retirement requirements of their participants, while minimizing the fiduciary risk of managing the plan and its investment lineup,' said Barbara Marder, global leader of Mercer's defined contribution consulting business. 'The significant decline in the capital markets has ramifications for recordkeepers, trustees, and investment managers.'

10 Issues to Investigate

To keep their plans on sound footing, Mercer suggests that plan sponsors investigate 10 key issues:"

The SPARK Institute Defends 401(k) Plans, Recommends Changes to Increase Coverage and Participation

2009-05-18T11:09:00.000-04:00

The SPARK Institute Defends 401(k) Plans, Recommends Changes to Increase Coverage and Participation: "The SPARK Institute today issued a white paper, 'The Case for Employer-Sponsored Retirement Plans - Coverage, Participation and Retirement Security,' that defends 401(k) and similar workplace retirement plans that have been criticized recently based on misunderstandings and misconceptions. '401(k) plans are the best vehicles for saving for retirement, however, improvements can be made and our paper makes a number of recommendations,' said Larry Goldbrum, General Counsel of The SPARK Institute. The white paper is available at www.sparkinstitute.org/comments-and-materials.php."

401k - IRA Rollover - IRA Rollover Rules, Forms, and Solutions

2009-05-15T13:49:00.000-04:00

401k - IRA Rollover - IRA Rollover Rules, Forms, and Solutions: "www.cakefinancial.com So you’re interested in an overview of 401(k) plans. A 401(k) plan is a special type of investment account, offered by employers and designed to help you save for retirement. You contribute money to your 401(k) plan through pre-tax payroll deductions. In other words, the money comes straight from your paycheck. Once the money is in the 401(k) plan, you can then allocate it to different investments, depending on your plan. Usually, you can choose from a number of …"

Commentary: Social Security healthier than your 401(k) - CNN.com

2009-05-14T16:42:00.000-04:00

We are almost at the top of the roller coaster. Hold on tight because the drop is coming soon. So they are saying 401(k) is no longer the way to go. Hmmmmm....

Commentary: Social Security healthier than your 401(k) - CNN.com: "The 2009 Social Security Trustees report released Tuesday provides a basis for assessing how each held up. On the one hand, assets in 401(k) accounts -- which are predominantly in stocks -- have declined in value by about a third, employers are suspending matching contributions, and millions of unemployed workers have seen their retirement savings efforts disrupted.

On the other hand, the Social Security Administration continues to send out monthly checks to 35 million retirees and their spouses, 9 million disabled workers and their families, and 6 million families whose breadwinner has died. In other words, the government system has proved to be much less fragile than the private system of retirement savings."

So Now They Tell Me -- or Whatever Happened to My 401(k)? | The Jewish Exponent

2009-05-14T13:29:00.000-04:00

So Now They Tell Me -- or Whatever Happened to My 401(k)? | The Jewish Exponent: "Recent stock-market declines have affected virtually every sector of the economy, but the impact on retirement accounts has been the most worrisome for many people.

Retirement accounts have lost about $2 trillion over the past two years due to market declines, according to Congressional Budget Office estimates.

But don't despair!"

Demand For Green, Social 401(k) Plans Grows - WSJ.com

2009-05-13T17:22:00.000-04:00

Demand For Green, Social 401(k) Plans Grows - WSJ.com: "More workers are trying to align their values and their retirement savings by opting for socially responsible investments in their 401(k) plans.

Many of those initially in SRI were in academia or nonprofit sectors who wanted their investments to have a positive social impact. Today, younger workers and mainstream investors are demanding them as options in their retirement accounts - especially so-called green funds.

'I think a lot has to do with a shift in the perception of investing,' says Joe Keefe, chief executive of PAX World Mutual Funds, saw the number of companies utilizing Pax World Funds through one of the major platforms jump in the last year to 44 from 15.

Investors were turned off by bloated CEO salaries and other questionable business practices that made headlines in the financial crisis. Keefe says they 'see sustainability and good governance as better for their portfolios.'"

PersonalFinance: A plan for your 401(k) | Special Coverage | Reuters

2009-05-13T13:57:00.000-04:00

PersonalFinance: A plan for your 401(k) | Special Coverage | Reuters: "WASHINGTON (Reuters) - There's a lot about 401(k) accounts in the news lately, and much of it is unsettling.

There are reports of workers finding their 401(k) contributions locked into investments they can't sell, and of hidden fees skimming value off the top of retirement funds. Big-name employers are doing away with matching contributions, so the only money going into employees' accounts comes out of their own paychecks. Finally, too many employees had no choice but to watch their hard-earned retirement savings evaporate in the great market meltdown of 2008/9.

What's an employee to do? Stop saving at work? Some in the 401(k) industry are a little bit smug about this. They point out that even if your plan isn't very good, and even if your employer has stopped matching your contributions, you can't beat the tax advantages of putting money into an employer-sponsored tax-deferred retirement plan.

That's not exactly true. You may have other tax-favored options."

Article - WSJ.com

2009-05-12T14:09:00.000-04:00

Article - WSJ.com: "Demand For Green, Social 401(K) Plans Growing,' published at 10:49 a.m. EDT, misstated in the third paragraph that PAX World Mutual Funds has seen the number of major investment platforms carrying its funds jump this year to 44 from 15 in 2008. Rather, the number of companies utilizing Pax World Funds through one of the major platforms jumped in the last year to 44 from 15. The correct version follows.)

NEW YORK (Dow Jones)--More workers are trying to align their values and their retirement savings by opting for socially responsible investments in their 401(k) plans."

401(k) auto enrollment not in Obama budget - Pensions & Investments

2009-05-11T17:06:00.000-04:00

401(k) auto enrollment not in Obama budget - Pensions & Investments: "A proposal that would require automatic enrollment of participants in existing 401(k) plans was not included in President Barack Obama’s fiscal 2010 budget, said Ed Ferrigno, vice president, Profit Sharing/401(k) Council of America.

As recently as May 7, Thomas E. Gavin, spokesman for the White House’s Office of Management and Budget, had insisted that the proposal would be included in the detailed analysis of the budget that OMB released today."

Will Obama Seize Americans’ 401k and IRA Funds?

2009-05-08T16:12:00.000-04:00

Will Obama Seize Americans’ 401k and IRA Funds?: "There is a rumor floating around that Obama will seize Americans’ retirement funds, like Argentina and some other countries have done.

Two investment newsletters - Green Chip Review and The Mining Speculator - have recently claimed that the 401k seizure is a sure thing.

Is this just crazy talk, or is there something to it?

And in October of 2008, the idea of confiscating private 401k and IRA accounts and replacing them with government accounts gained wide traction. See this, this, this, and this.

But are those plans still in the works, or has the idea been abandoned?"

Changes Coming for the 401(k) Plan - WSJ.com

2009-05-06T10:02:00.000-04:00

Changes Coming for the 401(k) Plan - WSJ.com: "Policy makers and some industry representatives say major changes to retirement investing and 401(k) plans are becoming increasingly likely under the Democratic Party's control of Congress.

Proposed legislation gaining momentum in the House and Senate would require the industry to break out 401(k) fees on investors' statements, and would essentially repeal Bush administration regulations allowing mutual-fund companies to offer personalized advice to 401(k) participants in the plans the companies manage.

In another proposed change, President Obama's 2010 budget calls for the future establishment of a program in which all workers would be automatically enrolled in employers' retirement plans. Now, in most cases, they must opt in to participate. Also under the administration's plan, employers that don't offer a retirement plan would be required to enroll their employees in a direct-deposit individual retirement account. Employees would be able to opt out of either approach."

LewRockwell.com Blog: More 401k Concerns

2009-05-05T09:00:00.000-04:00

LewRockwell.com Blog: More 401k Concerns: "Some investors in 401(k) retirement funds who are moving to grab their money are finding they can't.

Even with recent gains in stocks such as Monday's, the months of market turmoil have delivered a blow to some 401(k) participants: freezing their investments in certain plans. In some cases, individual investors can't withdraw money from certain retirement-plan options. In other cases, employers are having trouble getting rid of risky investments in 401(k) plans."

Does America need a new retirement system? - Personal finance- msnbc.com

2009-05-05T08:58:00.000-04:00

Does America need a new retirement system? - Personal finance- msnbc.com: "Should we be rethinking our retirement savings system?

“It’s time to have a campaign like we’ve had in health care in this country,” says Karen Friedman, policy director of the consumer advocacy group the Pension Rights Center, “We need to recognize a basic American ideal that everybody should be able to retire and make ends meet.”

Here are some ideas circulating from those who hope to strengthen — or completely rebuild — the way we approach retirement:"

How ETFs Can Fix the 401(k) Industry-05/04/2009

2009-05-05T08:47:00.000-04:00

How ETFs Can Fix the 401(k) Industry-05/04/2009: "The defined contribution retirement plan as we know it could soon be going the way of the dinosaur. This leaves a gaping hole open for exchange traded funds (ETFs) to seize the opportunity and help out the future of America’s workers.

Not only have many workers suffered major losses within their 401(k) plans, many employers have ceased to contribute to their employees plans, giving the future of working America a desperate outlook. David P. Loeper for Investment News reports that even many target date mutual funds, designed to protect participants’ plan balances as they approach retirement, have lost more than 30% of their value.

In Congress, various plans are starting to go in motion. Ideas range from nationalization to complete fee disclosure to try and fix this broken system."

The SPARK Institute Makes the Case for 401(k) Plans

2009-04-23T15:19:00.000-04:00

The SPARK Institute Makes the Case for 401(k) Plans: "'Employer-sponsored retirement programs, particularly 401(k) plans, have been under attack based on many misperceptions and misunderstandings,' said Goldbrum. 'As a result, we felt it was necessary to set the record straight with facts.'

'The 401(k) plan system is successful, fundamentally sound, competitive and innovative,' Goldbrum said. 'Since their inception, they have helped tens of millions of American workers save and increase their retirement savings for their post-work years.'"

Retirement Dreams Disappear With 401(k)s - CBS News

2009-04-23T13:21:00.000-04:00

Retirement Dreams Disappear With 401(k)s - CBS News: "The effects of the current economic crisis have touched everyone. Even if you still have a good job and a paid up mortgage, chances are your monthly 401(k) statement will remind you that you've lost a good chunk of your savings.

Trillions of dollars have evaporated from those accounts that have become the prime source of retirement funds for a majority of American workers, affecting their psyche and their future. If you are still young enough, there's time to rebuild and recover, but if you are in your 50s, 60s or beyond the consequences can be dire, and its drawing attention to the shortcomings of a retirement system that has jeopardized the financial security of tens of millions of people."

IFAwebnews.com | Congressmen seek changes to U.S. 401(k) system

2009-04-23T10:28:00.000-04:00

IFAwebnews.com | Congressmen seek changes to U.S. 401(k) system: "Two congressmen want changes to the nation’s 401(k) plans, including greater disclosure of fees and better access to information about plans for participants.

Rep. Robert Andrews (D-N.J.), chairman of the House Health, Employment, Labor and Pensions Subcommittee and Rep. George Miller (D-Calif.), chairman of the House Labor and Education Committee, are expected to reintroduce legislation that failed last year, when the nation’s 401(k)s lost more than $2 trillion."

Why the 401(k) Industry Needs Reform Right Now | ETF Trends

2009-04-23T10:26:00.000-04:00

Why the 401(k) Industry Needs Reform Right Now | ETF Trends: "The criticism of the 401(k) industry is getting louder and harder to ignore, and even Congress is paying attention. Rep. George Miller has a schedule of reforms that many investors and experts would like to see implemented. Rep. Miller is taking the mutual fund industry to task over their hand in the decimation of many individual investors’ portfolios, and this could solidify the case for ETFs to enter into this investment arena once and for all.

There are two big issues here: extremely poor fee disclosure and a lack of good education. Rep. Miller is working hard to take on this issue on both fronts.

This Sunday’s 60 Minutes focused on the need for more reform within the 401(k) industry. Watch it at CBS’s website."

How to Roll Over Your 401(k) Into an IRA | 401K | Retirement | Mainstreet

2009-04-17T09:51:00.000-04:00

How to Roll Over Your 401(k) Into an IRA | 401K | Retirement | Mainstreet: "Have you recently been laid off, or left money in 401(k) plans at previous employers? You can move your retirement funds to a rollover IRA, a tax-advantaged individual retirement account you can open yourself, even without an employer."

All about IRA: 401k Investor Guide For the Clueless

2009-04-17T09:50:00.000-04:00

All about IRA: 401k Investor Guide For the Clueless: "In your 401k plan you need to make two basic major decisions. First, how much to contribute each pay period. Second, how to invest. Consider this your basic investor guide to how to invest in your 401k plan.

We'll take this step by step, and keep it simple. This investor guide is designed to get you started down the right path. As you gain experience and learn how to invest, you can then fine tune your investment strategy."

Capitol Weekly: Calpensions: Push to overhaul private-sector pensions

2009-04-09T09:17:00.000-04:00

Capitol Weekly: Calpensions: Push to overhaul private-sector pensions: "Government retirement systems have to worry about rebuilding their pension funds without squeezing taxpayers or forcing deep cuts in other government services. But their retirees will continue to receive monthly checks.

In the private sector, individuals with 401(k) investment plans devastated in the stock market crash are simply out of luck, if they can’t wait years or decades for earnings to rebuild their funds.

Now there is at least one organized drive, Retirement USA (and reportedly talk among other groups) pushing for an overhaul of private-sector retirement plans and extending coverage to the half of all U.S. workers who only have Social Security."

Less than half of U.S. 401(k) money in stocks, report finds - It's Only Money

2009-04-06T16:04:00.000-04:00

Less than half of U.S. 401(k) money in stocks, report finds - It's Only Money: "But it's not what you might think.

For the first time in at least a dozen years -- maybe ever -- Americans have less than half their 401(k) assets invested in stocks, The New York Times reports. Yet it's not because they shifted a bunch of their assets (only 6 percent has been moved to fixed-income investments), according to Hewitt Associates. And more than half of all new contributions are still invested in equities.

Why the plunge, then? '... the equity stake in these accounts contracted with the market,' the story reveals.

Another reason to at least consider whether your account's investments need to be rebalanced."

Government To Confiscate 401(k)s and IRAs For Mandatory Savings Tax?

2009-03-20T13:49:00.000-04:00

Government To Confiscate 401(k)s and IRAs For Mandatory Savings Tax?: "Under the pretext of combating the financial crisis, Democrats in Congress have been conducting hearings on proposals to confiscate private retirement accounts and turn them into government-controlled accounts managed by the Social Security Administration, by implementing a new tax in the guise of mandatory savings scheme.

Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, testified before Congress last month, proposing that 401(k)s and IRAs be confiscated and converted into universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration."

Would Obama, Dems Kill 401(k) Plans? - Capital Commerce (usnews.com)

2009-03-20T13:45:00.000-04:00

Would Obama, Dems Kill 401(k) Plans? - Capital Commerce (usnews.com): "I hate to use the 'S' word, but the American government would never do something as, well, socialist as seize private pension funds, right? This is exactly what cash-strapped Argentina just did in the name of protecting workers' retirement accounts (Efharisto, Fausta's Blog). Now, even Uncle Sam isn't that stupid, but some Democrats might try something almost as loopy: kill 401(k) plans."

GOPUSA - The Loft

2009-03-20T11:12:00.000-04:00

GOPUSA - The Loft: "And so we have it... the 'change' we can believe in. Over the last three years or so, Americans have wanted 'change,' and change is exactly what we have received. Since the Democrats have come to power, unemployment is going up and the stock market is going down. The housing market has collapsed, and the power of big government has grown by leaps and bounds."