In this first year of the Starter 401(k), 75% of small employers went with this new 401(k) over their state-run auto-IRA program due to its simplicity, according to Jeff Rosenberger, COO of retirement platform Guideline.
In these states, 65-year-olds may have to make their nest eggs last a bit longer, as life expectancy in these states is a bit longer than the average of 18.4 years.
Connecting employees to effective communication resources streamlines the open enrollment process by taking communication of the plates of already overworked HR teams.
Since publication, freelance workers and others have filed lawsuits challenging the rule. These legal challenges currently are in the early stages of litigation.
Transitioning from voluntary to auto-enrollment in 401(k)s, coupled with auto-escalation, should be a key plan design feature for employers, recommends the Morningstar Center for Retirement & Policy Studies.
Employers and plan sponsors must prioritize guaranteed income options in 401(k)s as a necessity – not just a "nice-to-have" option, according to a Nationwide's Protected Retirement survey report.