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Do you think saving for retirement is just too tough? Think again. The number of people with 401(k) balances of at least $1 million hit a record 150,000 at the end of 2017 in plans run by Fidelity Investments. Likewise, the number of Fidelity-run IRAs with retirement savings balances of $1 million or more hit a record 152,000. And if $1 million seems out of reach for you — at least for now — don't worry, because those million-dollar balances were part of a broader pattern of retirement savings balances overall growing to record highs. Your retirement savings balances can...

Rich people — really rich people — have an inside joke about spending in retirement: They call it “skiing.” Not skiing as in snow skiing, but “spending our kids’ inheritance.” They use it in reference to splurges, such as pricey wines, cruises through Europe, second homes, or whatever strikes their fancy. They don’t feel bad about spending, because there’s little chance that they’ll spend so much that their own retirement is put at risk. It is truly their kids’ money, so why not? Here’s the crazy thing. A recent Washington Post story details how ordinary savers, folks who are comfortable,...

If you've gotten yourself out of debt (except the mortgage) and have a sizable emergency fund ( 3-6 months expenses) 2018 may be a great year to boost your Retirement savings. Many will have increased paychecks and be able invest wisely, but not as much as they could. Many will benefit in 2019 from the 2018 tax cuts and increased Child Tax Credits by getting huge refunds in 2019. But why wait? Time is Money. By Increasing your Withholding Exemptions NOW you can increase your paycheck and boost your Retirement savings even more! Make it a priority to get any...

Global payment network company Visa said Monday it will strengthen contributions to employees' 401(k) savings plans, as a result of the recently passed Republican tax law. "Tax reform in the United States will strengthen Visa's competitive position globally and create new opportunities for Visa to invest in our business," the company said in a statement. "With the additional 401(k) match, Visa's U.S. employees will enjoy a sustained benefit, consistent with the role they will play in building our business." The company said it will increase its 401(k) match up to 5 percent of salary. Currently, it contributes $2 for every...

Republicans want tax reform, but their refusal to cut spending forces them to look into all sorts of revenue raisers. Some are good, such as eliminating the deductions for state and local taxes. Others are counterproductive, such as the threat to significantly decrease the tax deduction on 401(k) accounts, potentially reducing the overall levels of savings for the millions of Americans using them. Instead, they should keep the deduction intact, hence encouraging savings -- and in addition create universal savings accounts. There are rumors that they are considering such a move. First, let me complain about the no-good proposal to...

It’s time to start paying attention, America. Once again, there is a big problem brewing on Capitol Hill, where some politicians still don’t have their priorities straight. The pols are under the disconcerting delusion that raiding workers’ 401(k) plans is a way for them to “pay” for the tax cuts they will grudgingly give us. They would rather reach into your pocket and jeopardize your retirement than make common-sense adjustments elsewhere. They want to change the only well-functioning retirement self-savings plans, which would be a disaster for the American family, the economy and the stock market. Let’s start with the...

...The chairman of the House Ways and Means Committee, said he has talked to President Donald Trump twice this week about 401(k)s. "He'd like to raise the limits so people can save more in those plans. So do I. I think that's a good start," Brady said....The amount workers can contribute to a 401(k) rises to $18,500 next year, up from $18,000 in 2017. People age 50 and older can tack on a so-called catch-up contribution of $6,000. But lawmakers are now looking at raising that limit to $20,000 or more.

President Trump said he “may be willing to negotiate” with Congressional Republicans on lowering how much Americans can contribute to their 401(k) retirement accounts — just two days after promising there will be “no change.” The comments, made on the White House lawn as he was walking to Marine One, came hours after US Rep. Kevin Brady, the majority whip and chair of the House Ways and Means committee, defied Trump’s statement from two days earlier. Republicans are reportedly looking to lower the annual cap on 401(k) contributions to about $2,400 — down from $18,000 for most savers, and $24,000...

The top Republican tax writer in the House said the GOP tax proposal that Republicans plan to unveil next week could affect retirement account rules and how Americans save money. The plan could put him at odds with President Trump, who has promised not to touch 401(k) retirement accounts. “We want more Americans to save more, we want them to save earlier in their lives,” House Ways and Means Chairman Kevin Brady, R-Texas, said at a breakfast with reporters Wednesday. *snip* [Trump] reaffirmed his position Wednesday, telling reporters that leaving the retirement savings plans intact is "very important."

WASHINGTON—President Donald Trump vowed on Monday to protect a popular retirement savings program, pledging to leave it untouched in the forthcoming Republican tax overhaul plan. Mr. Trump, in a tweet, shot down an idea that had been circulating in Washington policy circles and worrying the retirement-savings industry: limiting pretax contributions to retirement accounts. “There will be NO change to your 401(k),” the president wrote on Twitter. “This has always been a great and popular middle class tax break that works, and it stays!” But even a few days of chatter showed the concept’s unpopularity, especially at the $2,400 level. By...

If you are considered a “middle class worker,” you are about to be sucker-punched by a Republican proposal to alter the treatment of 401(k) contributions, which could make it much harder for you to save.” I am happy to report today President Trump just tweeted there will be NO change to the 401(k) Savings and Retirement Plan in his Tax Reform.   “There will be NO change to your 401(k). This has always been a great and popular middle class tax break that works, and it stays!”

Wall Street pushed back hard on Friday against a report that congressional Republicans are weighing a plan to severely limit the amount of money Americans can contribute to their 401(k)s. The Capitol Hill lawmakers, searching for ways to pay for President TrumpÂ’s broad proposed tax cuts, are eyeing a $2,400 cap on pre-tax contributions to 401(k) plans, used by millions of US workers to save for retirement. Currently, the pre-tax limit for such contributions is $18,000 a year. Contributions to 401(k)s are tax-deferred, which means that the government wonÂ’t be able to get its cut until retirees start withdrawing money...

Proposals floating around Washington to cap the amount that Americans can contribute before taxes to 401(k) plans and individual retirement accounts are unsettling professionals in the retirement industry. Republicans are looking for ways to generate revenue to support broad reductions in individual tax rates. One idea is to limit the amount of pretax money households can sock away for retirement saving. Such a move would likely generate significant political blowback but it hasn’t been explicitly ruled out, stirring worry among industry lobbyists.

Proposals floating around Washington to cap the amount that Americans can contribute before taxes to 401(k) plans and individual retirement accounts are unsettling professionals in the retirement industry. Republicans are looking for ways to generate revenue to support broad reductions in individual tax rates. One idea is to limit the amount of pretax money households can sock away for retirement saving. Such a move would likely generate significant political blowback but it hasn’t been explicitly ruled out, stirring worry among industry lobbyists.

House Republicans greeted current and future federal employees with two controversial body blows in recent days — one amounts to a pay cut and the other would allow new feds to be fired for “no cause at all.” The House Budget Committee approved a spending plan that would save the government $163.5 billion over 10 years by taking that amount from federal employees. (snip) Republicans call their plan “Building a Better America.” But the Americans now working to build a better country through their federal jobs would be called on to sacrifice again, as they have repeatedly over the years....

Experts, including some pioneers of the 401(k) savings plans , worry that the current retirement system is not working for many Americans. More than half of workers — roughly 55 million — don't have access to a retirement plan on the job and 29 percent of households with members age 55 and older don't have a nest egg or a traditional pension plan. Perhaps a guaranteed mandate would work better, according to an odd couple of retirement system reformers. Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis at the New School, and Hamilton "Tony" James, president and...

Nearly a third of retirees are playing chicken with one of the steepest tax penalties out there — and they are running out of time. IRS rules on so-called required minimum distributions generally kick in once you reach age 70½. For 401(k)s and other defined contribution plans, it's either when you turn 70½. or you retire, whichever is later. If you've inherited an IRA, you might also be subject to RMDs, even if your own retirement is years away. How much you need to take is usually based on the account balance at the end of the previous year, and...

snip Economist Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis, says she offered assurances at union board meetings and congressional hearings that employees would have enough to retire if they set aside just 3% of their paychecks in a 401(k). That assumed investments would rise by 7% a year. snip Ms. Ghilarducci wants to ditch the 401(k) altogether. She and Blackstone Group President Tony James are recommending a mandated, government-run savings system that would be administered by the Social Security Administration and managed by investment professionals. While both are Democrats, they believe their solution has bipartisan appeal....

illary Clinton And Wall Street: Financial Industry May Control Retirement Savings In A Clinton Administration BY DAVID SIROTA @DAVIDSIROTA AND AVI ASHER-SCHAPIRO ON 10/19/16 AT 12:50 AM Blackstone's Tony James: America's Not Great at Saving While Hillary Clinton has spent the presidential campaign saying as little as possible about her ties to Wall Street, the executive who some observers say could be her Treasury Secretary has been openly promoting a plan to give financial firms control of hundreds of billions of dollars in retirement savings. The executive is Tony James, president of the Blackstone Group. The investment colossus is most...

The Central States Pension Fund has no new plan to avoid insolvency, fund director Thomas Nyhan said this week. Without government funding, the fund will run out of money in 10 years, he said. At that time, pension benefits for about 407,000 people could be reduced to "virtually nothing," he told workers and retirees in a letter sent Friday. In a last-ditch effort, the Central States Pension Plan sought government approval to partially reduce the pensions of 115,000 retirees and the future benefits for 155,000 current workers. The proposed cuts were steep, as much as 60% for some, but it...