Our daily roundup of retirement news your clients may be thinking about.
What a cap on 401(k)s could mean for wealthy savers A contribution cap on tax-preferred retirement plans proposed by the government shouldnt worry retirees yet because the proposal is still in the early stages, which means it could still be changed significantly or not pass at all, according to CNBC. The proposal will impose a $3.4 million ceiling on the plans but details on its implementation are scare. Moreover, even if the propsosal were to pass in its current form, most clients wont be affected by the cap. According to a Fidelity study, only 72,000 of the 401(k) savers in its network had $1 million saved in their 401(k)s last year. To be sure, this represents a significant increase, but only 9% of those millionaire savers had $2 million, much less than the $3.4 million proposed cap. More to the point, the average 401(K) balance hit a record high of just $91,300 last year. --CNBC
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