One of the best resources for “real-time updates” on how retirees are settling into retirement is the Retirement Confidence Survey, which has been conducted for the past 33 years by the Employee Benefit Research Institute.
In the final days of 2022, our nation’s
lawmakers came together and approved a slate of changes designed to help Americans save more for retirement.
Not much good can come from a period of high inflation.
However, if you had to search for a silver lining, it is that the Internal Revenue Service in late 2022 announced historic increases in the contribution limits for retirement plans.1
Throughout your career, retirement
planning will likely be one of the most important components of your overall financial plan. Whether you have just graduated and taken your first job, are starting a family, are enjoying your peak earning years, or are preparing to retire, your employer-sponsored retirement plan can play a key role in your financial strategies.
When leaving your job or retiring, you have several options available for managing your retirement plan assets. You may be able to leave the money in your current plan, if your employer allows. Or you can take a lump-sum cash distribution, which will be subject to income tax and a 10% penalty if you’re under age 59½ (unless an exception applies), resulting in a potentially significant tax bill. Finally, you can roll the money into another tax-deferred account, preserving the primary tax advantages.
My spouse is about to receive a pension. We’ve heard of “pension maximization”. What is it?
Is pension maximization right for you? There are a number of factors to consider.
The pension maximization technique is not for everyone, but could be worth considering as you and your spouse evaluate the pension benefit options.