Tag: IRA withdrawals
With fewer protections and guardrails, we have a much less effective system. The most extraordinary development in the U.S. private sector retirement system is not the shift away from old-fashioned defined benefit plans, which began around 1980 and is virtually complete today, but rather the movement away from 401(k) plans, which replaced the defined benefit…
Current provisions encourage leaving the 401(k) system. I’ve been thinking a lot about leakages from retirement accounts lately. The system we have is not very sensible. Money escapes when people change jobs with no rationale for such distributions. Yes, the participant faces a 10-percent penalty in addition to federal and state income taxes, but that…
