Market Commentary

Coming Retirement Changes

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Congress is contemplating making sweeping changes to retirement accounts for non-government employees. For most of us, that means changes to our 401K plans or IRAs. About half or more private company employees have no access to retirement plans but the new retirement legislation winding its way through the government would change that.

Some of the proposals include allowing for a rainy day workplace savings program akin to the 401K. Make it easier for small businesses to offer retirement plans to workers. Let people contribute to traditional IRAs after they turn 70 and a half if they are still working. Let more workers invest some of their 401K money into annuities to deliver guaranteed income for life.

Do not look for these types of changes this year but maybe next as there is some bipartisan support.

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