Industry Articles
Industry Articles Home > Stretching your Retirement Dollar News
|
IRS issues new rules to provide more 401(k) options to workers 2010-05-24 The Internal Revenue Service announced a new measure that would require employers to provide more 401(k) investment options to employees, Dow Jones reports. The rule mandates that employers who offer workers 401(k) plans and company-owned stock within 401(k) programs afford participants the option to sell the stock and reinvest it at "periodic, reasonable opportunities" on a quarterly basis, according to the news agency. The new regulations, which require employers to offer workers at least three more investment options, are aimed at providing more diversification to an employee's retirement account, the newswire said. The new regulations are effective immediately and will apply to plans that begin on or after January 1, 2011, according to Dow Jones. Financial experts have long warned retirees against hedging their retirement income on one investment strategy. A diversified portfolio may protect an older adult's income by reducing losses in certain markets while increasing their profits in others. Allocating funds towards annuity investments and strategizing Social Security withdrawals may also stretch a retiree's income and provide more financial options during retirement.  |
