Resource Type: Fact Sheets and Issue Papers
Church Plans Can Leave Retirees Out in the Cold
Learn how one group of private retirement plans have little-to-no protections for the workers and retirees who are covered by these plans. What happened? In late 2009 Augsburg Fortress, the publishing house of the Evangelical Lutheran Church in America, announced in a letter to employees that it would terminate its traditional pension plan, affecting approximately 500 workers […]
Corporate Restructuring Can Cut Promised Pensions
Legally, companies can change their plans to end special early retirement pensions, but if they do, employees must still get the portion of the special benefit they have earned as of the date of the change – as long as they later meet its age and/or service requirements. But as employees of Dresser-Rand learned, if […]
Final 401(k) Fee Disclosure Regulations
On October 20, 2010, the Department of Labor issued final regulations that require private retirement savings plans, such as 401(k)s, to tell employees how much they are being charged in record-keeping, investment management and other fees. The regulations also include rules for disclosing information about the plan’s investment options. These rules apply only to plans where […]
State Retirement Plans and Divorce
Each state retirement system has its own rules relating to the division of state employees’ pensions in divorce proceedings. Below is basic information on each state retirement system’s rules. Why does this matter? A pension can be the most valuable asset of a marriage. When going through a divorce, both parties to the marriage should know whether the state government employee’s pension or […]
Roth IRAs
What is a Roth IRA and how does it work? A Roth IRA grows tax-free, and if an individual withdraws the money after age 59 ½ and the account has been in place for at least 5 years, the withdrawal will not be taxed. However, contributions to the Roth IRA are not tax-deductible. Who can […]
Traditional IRAs
What is a Traditional IRA and how does it work? The most common IRA, a Traditional Individual Retirement Account, allows an individual to get a tax deduction for money that is set aside for retirement. The money put into an IRA and the investment earnings on those contributions are not taxed until they are withdrawn. Who can set up a […]
Companies That Have Changed or Temporarily Suspended Their 401(k) Matching Contributions
Below is a list of employers that have announced plans to reduce or suspend matching contributions to their employees’ 401(k) and other defined contribution plan accounts since June 2008. For details on each company’s decision, click the employer’s name to see the company’s press release or news story announcing the change. Learn why the employer […]
Pension Rights After Divorce
A pension earned during marriage is generally considered to be a joint asset of both spouses. However, it is up to state divorce courts to decide whether and how pension assets are divided, and whether survivors benefits are payable. Except in the case of Social Security and Tier I Railroad Retirement benefits, a court order is necessary for someone who […]
Inherited IRAs
What is an Inherited IRA? If you are named as a beneficiary of the IRA of someone who has died, the amount you inherit becomes an Inherited IRA. The rules that apply to Inherited IRAs differ depending on the type of IRA you inherit and whether you are the spouse of the deceased IRA owner. […]
Payroll Deduction IRAs
What is a Payroll Deduction IRA? A Payroll Deduction IRA is an arrangement that allows employees to contribute to an Individual Retirement Account through their employer. Any employer can choose to set up a Payroll Deduction IRA. How does a Payroll Deduction IRA work? If an employer sets up a Payroll Deduction IRA, it is […]
Nondeductible IRAs
What is a Nondeductible IRA? A Nondeductible IRA is like a Traditional IRA in all respects but one: An individual cannot take a tax deduction for contributions made to the IRA. Who can set up a Nondeductible IRA? An individual can set up a Nondeductible IRA if that person is covered by a pension, 401(k) […]
International Differences in Poverty Rates
The data in the Country Comparisons chart comes from Table 1 of a study done for the Organization for Economic Co-operation and Development (OECD) called the Luxembourg Study. The study was done by Professor Timothy Smeeding in 2005 to compare poverty rates among older persons. The LIS team compiled micro-data from different surveys in order […]
