Survey Says Employers are Shortening 401k Waiting Periods
Published on: January 17th, 2006
A survey conducted by the Profit Sharing/401k Council of America in Chicago reports that more and more US employers are shortening the length of time it takes for their employees to be eligible to contribute towards 401k retirement plans. About 427 401k retirement plans were surveyed and the reports showed 69% of them permit employees to contribute towards 401k retirement plans within 3 months of hire date. This is a 4% increase from the last year, that showed only 65%. (Read Full)

Tree of Life Mandates NYLIM to Administer $100 Million 401k Plan
Published on: December 13th, 2006
Tree of Life (see company description below) has appointed the New York Life Investment Management LLC (NYLIM) firm to administer and manage its $100 million nest egg 401k plan and provide bundled services. Operating in St. Augustine, Florida, USA, Tree of Life is a world known distributor of organic and natural food products. (Read Full)

Mutual Fund Retirement Assets Surpass $10 Trillion Mark
Published on: December 8th, 2006
A study conducted by Investment Company Institute concluded that the combined total value of US mutual funds has surpassed the $10 trillion mark. The size of the mutual fund investments has increased by $286 billion, up 2.9% from last September. The largest amount of growth was seen by stock funds, growing up to $5.67 trillion, up 3.8% from last September. (Read Full)

401k Participants Okay Investment Decisions but Worry About Running out of Money During Retirement
Published on: December 8th, 2006
In a recent 401k survey conducted by the New York Life Investment Management LLC (NYLIM), many 401k participants agreed that they are making the correct investment decisions when it comes to investing their retirement savings, but still worry that they will not have enough money to survive on upon retirement. The survey had a sample population of 8,958 401k participants and 60% of them acknowledge that they are making the right investment decisions. However, only 40% out of all 401k participants are certain that they will not run out of money upon retirement. (Read Full)

401k Leads USA's Private Retirement Plan List
Published on: November 18th, 2006
A study conducted by the Investment Company Institute found that 401k Retirement Plans are the #1 Retirement Saving Investments made by working people in the USA. This study comes at a time when 401k plans are turning 25 years old (the official birthday of 401k plans is on November 10, 2006). 401k Retirement Plans now have 47 million active participants, which is more than double the size of Private Defined Benefit Plans that have about 21 million active participants. 401k Plans currently hold $2.4 trillion in retirement assets (liquid cash and investments) while private defined benefit & pension plans hold $1.9 trillion. (Read Full)

IRS Announces Max 401k Contribution Limits for 2007
Published on: October 26th, 2006
The IRS (Internal Revenue Service) announced on October 18th, 2006 the cost of living adjustments to pension and 401k retirement plans for the upcoming tax year of 2007. These adjustments are carried out by the Commisioner under Section 415 of the Internal Revenue Code. The 401k max contributions for the tax year 2007 and previous years is detailed below:
Note: The max 401k contribution for the year 2007 is $15,500 which is up $500 from the year 2006. (Read Full)

Paychex Offers Roth 401k Retirement Savings Option
Published on: October 5th, 2006
Paychex Inc., one of the largest payroll, human resources and business solutions company in USA has added the Roth 401k option to its fleet of 401k retirement services. Introduced by the Economic Growth and Tax Reconciliation Act of 2001, the Roth 401k Option is meant to encourage more small to medium sized businesses to enroll their employees in 401k retirement plans. Contributions to the Roth 401k are made in after-tax dollars and withdrawals are tax-free (upon retirement). (Read Full)

US Department of Labor Proposes Safe Harbor Rule to Encourage 401k Retirement Saving
Published on: September 29th, 2006
The US Department of Labor unveiled a Safe Harbor Plan for corporations that automatically enroll their employees and workforce in 401k retirement plans. US Department of Labor Secretary, Elaine Chao, quotes "Too many workers, some overwhelmed by investment choices or paperwork, are leaving retirement money on the table by not signing up for their employers' defined contribution plan. This regulation would boost retirement savings by establishing default investments for these workers that are appropriate for long-term savings" (Read Full)

Sticking with your 401k Retirement Account Pays Off Long Term, study reveals
Published on: September 17th, 2006
A study carried out by 2 Washington DC state organizations revealed that 401k participants who contributed payments towards their employer sponsored 401k retirement plans over the past 7 years have seen growth rates of over 50%. This is inspite of the tech boom bust of 2000 and market declines in 2002.. (Read Full)

Saver's Credit: 401k Contributions Tax Credit for Low Income & Middle Income Consumers
Published on: September 13th, 2006
If you fall in the category of low income savers, you may be eligible for a tax credit of $1000 on contributions made to 401k retirement plans, 403b plans, 457 government plans, IRA (Individual Retirement Account) or Roth IRA. This new legislation called the "Saver's Credit" went into effect in 2002 (thanks to the Economic Growth and Tax Relief Reconciliation Act of 2001) and is a reduction to your Gross Income (so that you have a less taxable income). It cannot be used as a $1000 refund for extra cash flow... (Read Full)