SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Converting retirement funds from a 401(k) into a Roth IRA offers the opportunity for tax-free growth and tax-free withdrawals in retirement, while also avoiding Required Minimum Distribution (RMD) rules. However, Roth conversion requires paying a significant tax bill up front. Often, this initial tax bill can be partially mitigated by gradually converting the 401(k) over time to keep yourself in lower tax ...

The U.S. Treasury Department and the Internal Revenue Service (IRS) have issued the final regulations for retirement “catch-up” contributions, outlining the application of the SECURE 2.0 Act provisions. New SECURE 2.0 Rules Impact High-Income Workers The finalized rules, released this week, detail the implementation of the Roth catch-up requirement, which will affect certain higher-income workers. “Catch-up” contributions allow employees aged 50 and older to contribute additional funds to workplace reti ...

Key Points Summary Group 1: U.S. Pension Policy Changes - The Trump administration signed an executive order on August 7 to ease restrictions on alternative investments in 401(k) accounts, including private equity, real estate, and cryptocurrencies. This move aims to enhance retirement savings opportunities for individuals [1][5][6] - The order directs the Secretary of Labor to review guidelines regarding fiduciary responsibilities related to alternative asset investments in 401(k) plans, indicating a potential shift in regulatory stance [5][6] - There are concerns that relaxing investment restrictions may lead to increased management fees, reduced transparency, and liquidity issues, despite the potential for greater investment flexibility [1][5] Group 2: Argentina's Pension Policy - On August 4, Argentine President Milei vetoed a law aimed at increasing pensions for the elderly and disabled, citing fiscal sustainability as the reason for the decision. This move affects a significant portion of the population, as over 40% of jobs in Argentina are informal and many are excluded from the national pension system [2][6][7] - The government argues that increasing pensions would jeopardize efforts to achieve fiscal balance, with projected additional costs of $5 million this year and $12 million by 2026 [7] Group 3: China's Social Security Policy - On August 1, the Supreme People's Court of China clarified that social insurance contributions are mandatory, reinforcing the legal framework around labor disputes and social security compliance [8][10] Group 4: International Pension Developments - Germany is considering comprehensive reforms to strengthen its occupational pension system, which may include expanding the applicability of the "social partner model" to non-collectively bargained employers [11][12] - Norway's sovereign wealth fund, GPFG, is reviewing its investments in Israel following public outcry over its holdings in a military-related company, indicating a focus on ethical investment practices [12][13] - Harvard and Brown University endowment funds have increased their exposure to Bitcoin ETFs, reflecting a growing interest among traditional institutions in cryptocurrency investments [15][16] Group 5: U.S. Independent Contractor Retirement Benefits - Republican senators have proposed the "Independent Retirement Fairness Act" to establish a portable benefits system for independent contractors, allowing employers to voluntarily contribute to retirement accounts, which could enhance retirement security for this growing workforce [17][20] - The proposal aims to balance flexibility and basic welfare protections for independent contractors, amidst ongoing debates about their classification and benefits [18][20] Group 6: U.K. Sustainability Reporting - The U.K. Financial Conduct Authority (FCA) plans to simplify sustainability reporting requirements for asset managers and insurers, aiming to reduce compliance burdens while enhancing transparency [20][21] Group 7: New York City Pension System Performance - New York City's pension systems achieved a 10.3% investment return for the fiscal year 2024, exceeding the actuarial target of 7%, which is expected to save approximately $2.18 billion in pension contributions over the next five years [22][23]