Tag: savings
Catch-up provisions had only a modest impact on saving. Under current law, individuals can contribute up to $18,000 per year to a 401(k) plan and those 50 and older can make an additional catch-up contribution of $6,000. Despite the fact that less than 10 percent of participants are constrained by these ceilings, many suggest that…
GAO finds that forced transfers erode in value and people lose track of inactive accounts. Millions of Americans – almost 40 percent of workers – leave their jobs each year, and many fail to specify what should be done with their 401(k) savings. If the balance is small, employers can transfer it out of t…
