Retirement Reform Blog

An article about 401(k) plan fees caught my eye this morning.   It seems that employees are taking a more active role in fighting high 401(k) fund fees, whether it be through pressuring their employers to provide lower cost funds, or simply taking their employers to court over fee disclosures.  There has been concern from Congress over the past few years regarding plan fees, so no doubt this issue will be addressed by Congress eventually. Read the rest of this entry »

Yesterday, the New York Times featured a story on the sad state of Social Security.  Actuaries expect that this year, benefits paid out to seniors will exceed payroll taxes taken in.  This is likely due to the higher unemployment rate, resulting in less payroll tax revenue, and the possibility that people age 62 and over who did not plan on retiring just yet are facing job losses and choosing to draw on their Social Security benefits.

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Earlier this year, the NCPA released a Brief Analysis on the 2010 tax law change that allows individuals of any income level to convert a traditional IRA to a Roth IRA.  For most people, the benefits outweigh the costs.  But a New York Times article released today gives some important  tips on how to convert.  If you are considering a Roth conversion, but are not  into following up and paying attention to detail, you may find yourself unintentionally paying the tax bill out of the Roth IRA, as well as a 10 percent penalty.   Most Roth mistakes can be fixed within 60 days of conversion, says the Times.   But procrastinators beware!