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Post by yogibearbull on Feb 11, 2024 12:33:35 GMT
Secure 2.0: Retirement Portability
Secure 2.0 requires retirement plan ( 401k/403b) portability for small accounts ($1-7K; limit adjusted) into another job's plan or Safe Harbor IRAs (also, Automatic Rollover IRAs). Plan balances under $1K can still be cashed out – those can be rolled over into IRA or spent (paying 10% penalty & taxes). PSN enables auto-portability for fees (5% of balance up to max $30) & its current members include Alight, Vanguard, Fidelity, Empower, TIAA, and Principal. ybbpersonalfinance.proboards.com/thread/567/retirement-portabilityEdit/Add: The entire legislation isn't new. But Secure 2.0 changed the limits and provisions that make auto-portability possible.
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Post by bb2 on Feb 11, 2024 21:17:33 GMT
Interesting stuff. So, YBB, do you think that the government is slowly making changes to prepare for a reduced role for Social Security? As an aside, I read about IBM's retirement change but that seemed to be more about IBM's financial situation than the employees. A couple other things I've run across gave me the impression that the feds are very slowly, around the edges, moving to reduce SS role in people's retirement. I could easily be wrong - usually am.
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Post by yogibearbull on Feb 11, 2024 21:42:18 GMT
bb2, I don't make that leap from this "small" step by private companies to fix the problem of abandoned 401k/403b or missing owners. But even this small change required a huge effort involving the IRS/Treasury & DOL. The sponsors or the employers didn't want to pay for the small costs, or face liabilities; there are millions of such accounts nationally, so even small costs add up. They had to create a mechanism to pay for costs out of the abandoned accounts. Moving funds into a Safe Harbor IRA, even a bad one from missing owners' point of view, also required various waivers of liability.
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Post by Mustang on Feb 12, 2024 2:04:42 GMT
Interesting stuff. So, YBB, do you think that the government is slowly making changes to prepare for a reduced role for Social Security? ...... A couple other things I've run across gave me the impression that the feds are very slowly, around the edges, moving to reduce SS role in people's retirement. I could easily be wrong - usually am. No. I've read a couple of opinion pieces suggesting that. But, touching social security is the kiss of death for any politician's career. And, it should be. Since social security is independently funded through payroll taxes (which are different from income taxes) messing with social security would do nothing to fix government overspending. In fact, social security is the one government program that has built in safety features to prevent overspending. When the trust fund runs out, payments to recipients will automatically be reduced.
I kind of feel sorry for the members of congress that lets that happen. Their replacements will then fix social security just like it was fixed in the 80s.
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Post by roi2020 on Feb 13, 2024 7:11:36 GMT
Interesting stuff. So, YBB, do you think that the government is slowly making changes to prepare for a reduced role for Social Security? ...... A couple other things I've run across gave me the impression that the feds are very slowly, around the edges, moving to reduce SS role in people's retirement. I could easily be wrong - usually am. No. I've read a couple of opinion pieces suggesting that. But, touching social security is the kiss of death for any politician's career. And, it should be. Since social security is independently funded through payroll taxes (which are different from income taxes) messing with social security would do nothing to fix government overspending. In fact, social security is the one government program that has built in safety features to prevent overspending. When the trust fund runs out, payments to recipients will automatically be reduced.
I kind of feel sorry for the members of congress that lets that happen. Their replacements will then fix social security just like it was fixed in the 80s.
After all, fixing Social Security is an important part of their jobs.
The longer the "can is kicked down the road", the more painful the solution will be.
Alas, I don't have much faith in these clowns.
It seems likely this issue will not receive the attention it deserves until the 11th hour. |
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