A new study released by the Ariel Education Initiative and Hewitt Associates and funded by the Rockefeller Foundation confirms what many researchers and retirement policy experts have known for a while now: When it comes to providing retirement income, 401(k) plans just aren’t cutting it for many minorities. (more…)
Last week Zep Inc. announced plans to reinstate its 401(k) matching contributions. This move comes six months after the company suspended its match and cut executive pay to reduce costs. At the time, Zep’s CEO said that restoring the match would be the top priority when the company returned to profitability. Currently, Zep is restoring its match to half the level it was before the suspension, but the company expects to fully restore the match by January. (more…)
With Mother’s Day approaching, it seems only fitting that I put in a plug for the current edition of Mother Jones magazine. Its cover asks, “Who Ran Away With Your 401(k)?” and the issue is required reading for anyone interested in the future of retirement income.  (more…)
Last week, the U.S. House of Representatives approved a Roth alternative in the Thrift Savings Plan for government employees. Roths are the antithesis of sensible tax and budget policy. Rather than expanding them to federal employees, Congress should scrap them.
As most of us know, there are now two choices in both IRAs and 401(k)s. With a traditional IRA or 401(k), the contribution is not taxed when made, but distributions from the retirement plan are taxable. In both Roth IRAs and Roth 401(k)s, the contribution is taxed in the year that it is made, but distributions are tax-free.
The advantage of either alternative is the same — the elimination of tax on investment income. The difference is when the money is taxed. This may seem like a minor difference, but the amount of money that you can accumulate tax-free can be greater in a Roth. (more…)
In the current economic climate, few of us want to open our 401(k) statements. As we’ve written in the past, the faltering stock market, combined with employers eliminating their 401(k) matching contributions, has made retirement security quite a gamble. But if you are one of the brave, a new tool can help you find out how your 401(k) measures up to 401(k) plans at other companies. (more…)
It isn’t uncommon to hear people comparing NBC’s hit television show, The Office, to their own workplaces. Many of the events on the show mirror what happens in offices across the country. But for many people last night’s episode hit a little too close to home. (more…)
Earlier this week, the Pension Rights Center’s list of companies that have suspended their 401(k) matching contributions reached 100. (more…)
In my work here at the Pension Rights Center, one of my responsibilities is to update the list of companies that have suspended matching 401(k) contributions. This week I’ve had to add more than 15 companies to this list. Even worse, some of these companies are suspending matching 401(k) contributions and freezing their traditional pensions, leaving more and more workers out in the cold. (more…)
It isn’t every day you that hear a company say that providing a 401(k) match is the “right thing to do” for its employees. Nope, you don’t hear it that often - especially during an economic downturn that many have compared to the Great Depression. So, when I heard that Dollar Thrifty Automotive Group reinstated matching contributions to its employees’ 401(k) accounts, I took notice. (more…)
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