Latest news with #SECUREAct2.0
Yahoo
02-04-2025
- Business
- Yahoo
Congruent Acquires IPX Retirement Edge, Expanding its Suite of Retirement Technology Offerings
BURLINGTON, Mass. & CHENNAI, India, April 02, 2025--(BUSINESS WIRE)--Congruent, a specialist technology partner to the U.S. retirement industry, today announced the acquisition of IPX Retirement Edge, a niche platform for retirement income solutions, from IPX Retirement. The IPX Retirement Edge platform allows Congruent to cater to the growing need for guaranteed and secured income options among participants. IPX Retirement Edge enables Defined Contribution (DC) retirement plans to offer in-plan guaranteed income investment options. It supports the entire participant journey and experience, from enrolment and education to investment selection, policy issuance, cashiering, and statement reporting. "The SECURE Act 2.0 has fundamentally changed the retirement landscape by encouraging plan sponsors to offer guaranteed income options," said Balaraman Jayaraman, CEO of Congruent. "IPX Retirement Edge is a transformative solution for annuity providers, sponsors, participants and recordkeepers looking to streamline the integration of guaranteed income options within 401(k) plans. IPX Retirement Edge removes the traditional barriers that have made in-plan annuities complex to administer by automating the entire process from participant education through policy management. This comprehensive platform enables providers to efficiently deliver the retirement security that today's plan participants and sponsors seek while significantly reducing operational complexity and risk for recordkeepers and sponsors alike." "With the addition of IPX Retirement, Congruent will further enhance the breadth of its retirement solutions through the CORE platform. Congruent is well-positioned to enable innovative connectivity between plan service providers and retirement income providers to offer income solutions. Together, this combination ensures a wider set of offerings and a seamless experience for advisors, sponsors, record keepers and participants," said Bill Mueller, CEO of IPX Retirement. About Congruent Solutions Congruent Solutions has been a trusted specialist in product- and technology-driven services for the retirement industry since 2004. Today, our CORE SaaS and outsourced plan administration services empower leading Fortune 500 plan providers and third-party administrators to solve business challenges and prepare for the future. View source version on Contacts Media Contact- Sriganesh Raman (sriganesh.r@ Sign in to access your portfolio
Los Angeles Times
19-03-2025
- Business
- Los Angeles Times
The SECURE Act 2.0 Presents Key Differences Over 1.0 Version – Do You Need To Modify a Trust?
The Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in 2019, brought significant changes to retirement account distribution rules. The subsequent passage of SECURE Act 2.0 in December 2022 further expanded and refined these regulations, impacting individual retirement accounts (IRAs), employer-sponsored plans, and estate planning strategies. A crucial aspect of these legislative changes is the impact on trusts named as beneficiaries of retirement accounts. This article compares SECURE Act 2.0 to prior law and explains why trusts that were designed before its enactment must be modified to align with the new legal framework. Prior to the SECURE Act, trusts were often structured as 'conduit trusts' or 'accumulation trusts' to take advantage of the stretch IRA provisions, allowing RMDs to be distributed gradually over the beneficiary's lifetime. However, under the SECURE Act's 10-year rule, these trusts may no longer function as intended, leading to unintended tax consequences and administrative issues. The SECURE Act 2.0 continues to reshape retirement and estate planning. Trusts that were structured before these changes may no longer align with the new distribution rules, potentially causing unintended tax burdens and limiting beneficiary protections. Anyone with a trust as the beneficiary of a retirement account should review and modify their estate plan with a qualified professional to ensure compliance with the latest laws and optimize tax efficiency. By understanding the nuances of SECURE Act 2.0 and adjusting trust provisions accordingly, individuals can better protect their assets, reduce tax exposure and ensure a smoother transition of wealth to future generations.
Yahoo
21-02-2025
- Business
- Yahoo
How to save for retirement in your 20s and 30s
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. How can young adults in their 20s and 30s manage student loan repayment while saving for retirement? What are the best investment approaches for young adults? How much should young adults be saving for retirement? What do young adults need to know about preparing for retirement? Those are just some of the questions Stephanie Guild, head of investment strategy at Robinhood, answered in a recent episode of Decoding Retirement. Whenever you have debt, it's important to focus on paying it off, starting with the most expensive debt first, Guild said. However, Guild doesn't think young adults need to rush to pay off all their student loans immediately, depending on their interest rate. A balanced approach — paying down debt while also investing — can be beneficial, especially if loan interest rates are lower than potential long-term market returns. Read more: How much money should I have saved by 30? Historically, the S&P 500 (^GSPC) has averaged about 10% annually, though future returns may vary. Currently, the interest rate on direct subsidized and direct unsubsidized federal student loans is 6.53%. When it comes to paying down student debt and investing, "I think doing a little bit of both is a good idea," said Guild, who emphasized the importance of understanding loan terms and exploring ways to lower interest rates. Additionally, employer benefits can provide some relief. The SECURE Act 2.0 allows employers to offer matching contributions for employees who are repaying student loans. This means an employer can contribute to an employee's retirement plan based on their student loan payments. However, not all companies offer this benefit, so employees should check with their HR or benefits department. "It's probably not widely done," said Guild. "It takes a lot for companies to change their benefits and policies. But absolutely, it's something you should ask about. Why not ask for the help?" The traditional investment guideline suggests allocating a percentage of your portfolio to stocks using the guideline 100 minus your age, with the remainder in bonds. For example, someone in their 20s might have a portfolio of 80% stocks and 20% bonds. However, Guild said your investment strategy should consider more than just age. While this guideline takes time horizon into account, and that's "very important," a longer time horizon allows investors to ride out market fluctuations. "It means that you have a better chance of capturing the positive things that come out of investing," she said. Read more: Retirement planning: A step-by-step guide And risk tolerance is just as important. "Investing is always about willingness and ability," Guild said. "I see time horizon as the ability part. But it's also your willingness; how comfortable are you to take the risk that there's going to be times when the value of your account falls." Market downturns can be significant, but for someone in their 20s who won't need the money for decades, investing 100% in stocks may be reasonable. "I actually think 80/20 for a person who's willing to take on the risk could be almost too conservative," Guild said. For young adults who prefer less volatility, a 60/40 stock-to-bond allocation might be a better choice. However, Guild warned that bonds may not serve the same stabilizing role they have over the past 40 to 50 years. Since 1982, declining interest rates have generally supported bond values. But now, with rising and persistently high interest rates influenced by government deficits, bonds may not offer the same stability. "I'm not sure that bonds are going to play as stable a role in a portfolio, which is why I'm saying you really need to think about your risk tolerance," Guild said. Guild also addressed the perception that investing is the same as gambling. "On some level, it's all gambling in the short term," she said. "The answer to this question is time." She noted that young adults often focus on short-term bets — whether in stocks or sports. But as people age, their priorities change. They start thinking about supporting a family, managing a job, or planning for the future. According to Guild, part of this maturation process involves establishing an emergency fund — cash set aside in a high-yield savings account to cover six to 12 months of expenses — and investing for the long term and for retirement in a 401(k) or IRA. Once these foundations are in place, Guild said it may make sense to set aside funds for speculative investments like meme stocks, crypto, or high-risk private assets. "I think there's a place to take risks and potentially get outsized returns — but knowing that it can also go the other way," she said. At a minimum, she encouraged young adults to start saving and investing as early as possible, even with small amounts. "I think sometimes people don't end up starting earlier because they don't feel like they have enough money to put aside," she said. "Don't feel like you need a chunk of money to get started." In fact, she pointed out that at Robinhood, one can start investing with just a dollar a day by buying fractional shares. "If you save a dollar a day, that adds up to, over like a 35-year period, $13,000," Guild said. Following a diversified approach, that $13,000 could grow to nearly $40,000. And if one saved $3 a day, that could grow to more than $160,000. Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service. Sign in to access your portfolio
