Are new limits to 401(k) contributions on the horizon? President Trump said in a speech on Monday that there would be no changes to 401(k) policy, but U.S. Treasurer Jovita Carranza cautioned that the plan “is always going to be under review”. What should investors expect? Christiano Lima covers the story. The S&P 500 made history Monday, but it wasn’t for hitting a record high. Rather, it was for continuing a 242-day period without a single decline. Investors shouldn’t be complacent, however, as Charles Biello of Pension Partners warns. The IRS has released new contribution limits for pension plans, with limits for many plans going up somewhat. Sally Schreiber summarizes the changes for the Journal of Accountancy.
Trump: ‘There Will Be No Change To Your 401(k)’ – President Donald Trump on Monday said there would be no changes to 401(k)s, days after The New York Times reported that House Republicans were considering placing a cap on contribution limits. The proposal would cap the yearly amount workers set aside in 401(k) accounts to $2,400. Currently, workers younger than age 50 can put as much as $18,000 in a 401(k) without paying taxes on the front end. Workers older than 50 can put up to $24,000. Read more…
The S&P 500 Just Made Stock-Market History—For Doing Almost Nothing– By at least one measure, the S&P 500 index on Monday registered its lengthiest period of quiescence in history. This broad-market benchmark hasn’t experienced a decline of at least 3% since Nov. 7, 2016. That 242-day period without a single-session drop of that magnitude broke the previous record that stretched from Jan. 26, 1995 to Jan. 9, 1996. Read more…
2018 Pension Plan Contribution Limits Are Announced– The Internal Revenue Service has released the inflation-adjusted amounts that apply to pension and 401(k) plans for 2018. While some limits remained the same as in 2017, many were raised to reflect cost-of-living increases. Read more…
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