Tag: required minimum distribution (RMD) regulations
There is a risk that people will spend and consume too little. For the last few years, my colleagues and I have been focusing on the drawdown aspect of 401(k) plans. The time has come when the first cohort of workers will retire entirely reliant on the accumulations in their 401(k)s and IRAs (mostly rollovers…
Transforming a stream of lifetime benefits into a lump sum undermines retirement security. Recently, the IRS walked back protections that limited a company’s ability to offer a lump-sum payout for the monthly benefit provided by its defined benefit pension plan. This strategy of offering lump sums allows companies to reduce their liabilities before purchasing a…
