Retirement Reform Blog

Do you want to pay the piper now, or later?  Currently, only households making less than $100,000 a year or spouses filing jointly can convert their traditional Individual Retirement Account (IRA) into a Roth IRA.  But as noted in a recent Wall Street Journal article those restrictions will be lifted in 2010, so that workers of any income level can convert their traditional accounts to a Roth.  Traditional IRAs allow workers to save money tax free now and pay taxes when they withdraw their money during retirement.  Roth IRAs, on the other hand, allow workers to pay taxes on retirement savings now and withdraw it tax free later.   If you're not sure whether a Roth IRA is right for you, check out the NCPA publications "To Roth or Not" and "Would You Benefit from a Roth IRA?"  

To readers who are having misgivings about the stock market, the bond market, your 401(k) or IRA accounts and retirement savings in general:  Take a look at the new NCPA policy report, "Ten Ways to Wreck Your Retirement."  While some of the ways seem obvious, the recent economic turmoil have left some savers tossing common sense out the window.  So think carefully before you cash out and stick your money under the mattress or invest in ostrich farms of dubious value (remember those from the 1980s?).

It looks as if pensions aren’t going to be enough to secure a good retirement for most Americans.  According to a study from the Employee Benefit Research Institute (EBRI), less than half of men (42.6 percent) and just over a quarter (27.9 percent) of women aged 65 and over received annuity or pension income in 2007 as part of their retirement.

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