IBM made headlines in November when it announced it was ending its 401(k) match program in favor of a new defined benefit retirement account, a rarity among private-sector employers. The move has experts debating whether more companies will follow suit and open or reopen pension plans for their employees.
2023 has been a memorable year in the markets, with events such as bank failures, interest rate raises, and labor strikes sending ripples through the economy. Take a visual look at some of the major events that told the financial story of 2023.
The impending end of the year might have you thinking about required minimum distributions (RMDs) from retirement accounts like 401(k)s. Changes to RMD rules in SECURE 2.0 legislation have made it a little more complicated to determine who’s required to start taking RMDs when, so here’s a simple guide.
Another change included in SECURE 2.0 will allow for unused funds in 529 college savings accounts to be rolled over into a retirement account. Beginning in January, you’ll be able to rollover excess funds from a 529 plan into a child’s Roth IRA, kickstarting their retirement savings.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
Defined benefitAlso known as a pension, this is a type of pooled retirement plan in which the plan promises to pay a lifetime benefit to the employee at retirement. The plan manages investments on behalf of members, and the retirement benefit is based on factors such as age at retirement, years of employment and salary history.