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News You Should Know

News You Should Know: Engagement Beats Divestment

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More important to engage with companies than divest, panelist tells WPS | Pension & Investments

A panelist at a discussion hosted by Pensions & Investments made the case that engagement is more effective than divestment. Even if you agree with the aims of any particular divestment movement, divestment doesn’t work he argued. Why? Divestment doesn’t affect companies. Selling a share of a company to a different shareholder does not create a deterrent for the company. Engagement is a more effective avenue, the panelist argued. Owning a share means owning a vote at a company’s annual meeting. That can influence company policies over time.

IRS Announces 2021 Retirement Plan Contribution Limits For 401(k)s And More | Forbes

The IRS announced minor changes to rules governing retirement contributions for 2021. Limits stay the same for 401(k) and 457 accounts ($19,500, or, for those 50 and older who utilize the catch-up provision, $25,000) and IRAs ($6,000). The IRS did bump up income limits for those hoping to deduct IRA contributions from their tax bill. The article contains more details about these changes and others.

5 Mistakes To Avoid With Retirement Account Beneficiary Selections | Forbes

This story in PERA On The Issues outlined the importance for making an estate plan. In this article, learn more about common mistakes people make with their beneficiary selections and why they matter. For example, this author has seen a mother of six leave her life insurance beneficiaries untouched since her first child was born. He’s also known a man who named his wife as an account beneficiary. What’s the problem with that? He’d remarried since then—twice.

Neal, Brady unveil retirement savings proposal | Roll Call

This bipartisan bill has emerged from the House Ways and Means Committee. It also comes just months after the passage of the CARES Act, which modified rules for retirement accounts. While this bill isn’t expected to become law this year, it sets the tone for continued discussions about retirement legislation in the coming year. Among other things, the bill would: increase the tax credit for any small employer that starts a workplace retirement plan, further increase the age when required minimum distributions kick in, and allow employers to include student loan repayments as matching contributions for a retirement account.

News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

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