They are coming for your 401K’s and IRA’s

by | Feb 27, 2023 | 401k | 1 comment

They are coming for your 401K’s and IRA’s




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As the cost of living continues to rise, Americans are increasingly worried about the future of their retirement savings. With the stock market in a state of flux, many are wondering if their 401Ks and IRAs are safe.

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The good news is that the government has taken steps to protect your retirement savings. The Employee Retirement Income Security Act (ERISA) of 1974 is a federal law that sets standards for employee benefit plans, including 401Ks and IRAs. This law requires employers to provide disclosure documents to employees that explain their rights and responsibilities. It also provides legal protections for employees if their employer fails to meet their obligations.

However, there are still some potential threats to your retirement savings. One of the most common is the risk of an employer or plan sponsor going bankrupt. In this case, the employer may be unable to make contributions to the plan, or may even be forced to liquidate the plan. If this happens, you may be left with fewer options for retirement savings.

Another threat is the possibility of Congress changing the rules governing 401Ks and IRAs. For example, Congress could decide to reduce the amount of money you can contribute each year, or change the tax treatment of withdrawals. These changes could have a significant impact on your retirement savings.

Finally, there is the risk of fraud or mismanagement. Employers and plan sponsors are required to follow certain rules and regulations when it comes to managing retirement plans. If these rules are not followed, it could put your savings at risk.

The bottom line is that your retirement savings are not 100% safe. But by understanding the risks and taking steps to protect your savings, you can help ensure that you have enough money to retire comfortably. Make sure to stay informed about changes to the laws governing retirement plans, and be aware of any potential threats to your savings.

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