As part of America Saves Week, Feb. 23–Feb. 28, 2015, ICMA-RC is helping to educate public sector employees on the importance of maintaining long-term savings behaviors when planning for retirement. America Saves Week is an opportunity for employees to renew their focus on saving for retirement at a time when people often think about establishing goals — at the beginning of the year.
The Vantagepoint Milestone Funds have marked their 10th anniversary as registered target date mutual funds. Eight of the funds have built a decade-long track record, and each of the eight has outpaced the peer median of its Morningstar category for the 10-year period ended Dec. 31, 2014.
The U.S. Supreme Court, on June 12, 2014, unanimously ruled in Clark v. Rameker that inherited Individual Retirement Accounts (IRAs) do not qualify as "retirement funds," but rather are considered to be "money that can be freely used for current consumption," and therefore are not exempt from a debtor's bankruptcy estate.
ICMA-RC is pleased to announce that its Chief Investment Officer, Wayne Wicker, has been selected as a finalist for Chief Investment Officer's prestigious "Industry Innovation Award" in the Defined Contribution Plan category. According to CIO, "The award highlights the most innovative and positive work being done for, and at, the world's largest pensions, endowments, foundations, and sovereign wealth funds."
On October 23, 2014, the IRS announced the various adjustments applicable to retirement plan contribution limits for 2015. The elective deferral limit for 457 and 401(k) plans increases to $18,000, and the annual additions limit for 401(a) plans increases to $53,000. Traditional and Roth IRA contributions limits are unchanged.
The Internal Revenue Service and Treasury Department in July 2014 amended Required Minimum Distribution (RMD) rules to permit the expanded use of "longevity" annuities in retirement plans. The use of longevity annuities, typically purchased at retirement with payments deferred until an individual reaches an advanced age (such as 85), is one approach to reduce the risk of outliving retirement plan savings.
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