Our daily roundup of retirement news your clients may be thinking about.

Schumer: Do more to address Social Security theft
Sen. Charles Schumer, D-N.Y., wants legislation that would protect consumers from Social Security identity theft, according to a story from the Associated Press. People who have stolen an individual's Social Security account would face tighter penalties under the bill. The legislation would seek a new office to provide assistance to victims and an automated system designed to inform workers on changes in the way their Social Security benefits are deposited into their accounts.  --Yahoo Finance

Small business: Turbocharge your retirement plan
Small-business owners who have extra money to set aside for retirement after maxing out their profit-sharing contribution plan may consider a cash balance plan, according to this article on MarketWatch. Also called a "hybrid" pension plan, a cash balance plan combines features of a defined contribution plan and a defined benefit pension plan. Although the plan offers huge benefits, small-business owners should know that it also has drawbacks, so it's important that they consult with their financial advisor before making a decision.  --MarketWatch

Small sums, lifetime assets: The gift of a retirement account
Parents may consider giving their child a retirement starter account if they want to help secure his/her future financial health and teach him/her the value of savings and investing, according to an article on Motley Fool. This retirement starter account can be in the form of a brokerage account under the Uniform Gift to Minors Act or the Uniform Transfer to Minors Act, or a Roth individual retirement account. Parents can use retirement-return calculators to estimate the projected earnings and contributions.  --Motley Fool

Why Americans keep treating their 401(k)s like piggy banks
Although taking a loan from a 401(k) plan offers advantages, workers should consider such a loan their option of last resort, according to this article on Time Money. The loan will be treated as a distribution subject to a 10% penalty and regular income tax if workers change jobs and are unable to repay the loan within a month. Workers with standing loans also lose the opportunity of growing their contributions as they cease from contributing to their plan while they are repaying their loans, an expert from Schwab says.  --Time Money

Turning 50? Catch Up on Retirement Savings
Workers who are 50 years old and older can still shore up their retirement savings, as they are allowed to increase their IRA contributions up to $6,500, according to an article from Kiplinger. They are also allowed to add $5,500 more to their 401(k) and other employer-sponsored retirement plans. Some retirement plans for those in public sector also offer an option that allows them to make a catch-up contribution or double their annual maximum contribution.  --Kiplinger

Read more:


Register or login for access to this item and much more

All Bank Investment Consultant content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access