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^oniriDuung to your retirement plan is now “automatic.” The new law makes it easier for employers to automatically enroll their employees in the company’s 401(k) plan. The company would set default contribution limits and the employee would have to “opt out” should he (unwisely) decide to not participate.
“This is one way to address the problem of employees not having something of a safety net for retirement,” said Lange. “It would ensure that some retirement saving occurs—again with the attendant risks/benefits of “being in the market’ falling on the employee.”
• Here’s the good news: it just got a lot easier to save for retirement. On the plus side of the equation, the new law makes permanent incredible income tax saving vehicles that will allow taxpayers to make larger IRA, Roth IRA Roth 401(k) and other retirement plan contributions. Prior to the law’s signing, some of the contribution limits and other provisions were due to expire in 2010. Since these laws are now permanent, taxpayers can confidently make retirement and estate planning decisions to secure their future and their family’s future.
a. Higher Roth IRA or IRA contributions of $4,000 per year, $5,000 in 2008 and higher amounts adjusted for inflation thereafter
b. Higher elective deferral amounts to 401(k) and 403(b) plans of $15,000
c. Catch-up contributions for workers 50 and older of
95.1%