You may think $100,000 in your 401(k) is enough for retirement -- but viewing a lump sum can give a false sense of security, say retirement experts.
A $100,000 or even $200,000 balance in a 401 plan might seem like a lofty amount of money — and it is — but it may not mean as much in your retirement as you think.
See: Here’s proof that 401 plans are not working for most Americans — can you guess who they ARE working for? Under the Secure Act, plan sponsors will need to deliver that monthly figure in their annual statements to investors, but the law did not specify how. Regulators have yet to clarify the guidelines for how plan sponsors will calculate that monthly number, but the goal is to give investors a reference as to where they currently stand, and where they would stand in retirement, said Abkemeier.
The Secure Act made a few other changes to the country’s retirement system, including expanding access to annuities in 401 plans and creating easier paths for small businesses to band together to offer retirement plans to employees. The law also eliminated the “stretch IRA” for most Americans, which allowed inheritors of qualified accounts to withdraw over their lifetimes and delays the age for required minimum distributions.
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