States Help Boost Retirement Savings for Workers Without Employer Plans with DOL’s Blessing

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In an effort to help Americans save more for a comfortable retirement, California and 5 other states now offer employees a state retirement plan for those without a 401k or similar tax-deferred benefit plan. The Retirement Industry Trust Association (RITA) supports all retirement initiatives and helping people save in any way is a positive,” says Mary Mohr, Executive Director, RITA and co-pioneer of the Roth IRA.

Mary Mohr with Senator William Roth - Roth IRA

Mary L. Mohr with chief legislative sponsor, Senator William Roth. Photo taken in 1997 upon passage of the legislation.

The Retirement Industry Trust Association (RITA) supports all retirement initiatives and helping people save in any way is a positive,” says Mary Mohr, Executive Director, RITA and co-pioneer of the Roth IRA.

In an effort to help Americans save more for a comfortable retirement, California and 5 other states now offer employees a state retirement plan for those without a 401k or similar tax-deferred benefit plan. Given the fact that 52% of Americans have less than $10,000 in retirement savings – employees now have access to tax-advantaged savings with the new state run programs. To help stave off a retirement crisis – this is another effort to help protect people from running out of money.

The Retirement Industry Trust Association (RITA) supports all retirement initiatives and helping people save in any way is a positive,” says Mary Mohr, Executive Director, RITA and co-pioneer of the Roth IRA.

Employees can opt-out if they choose, however, studies have shown that saving early and more often will substantially improve the financial outcome for retirees. “Educated investors that understand the rules and opportunities not only have significantly increased their retirement wealth, they have helped America fuel job growth and revitalize real estate in many circumstances. It’s never too early to start saving for retirement.

There are essentially three ways to increase tax-deferred and tax-free savings:
1.    MyRA is a good starting point--a new retirement savings account from the United States Department of the Treasury
2.    Take advantage of the new state plans if your state offers one
3.    Create a self-directed IRA for ultimate flexibility and true diversification outside of the stock market. Choices include real estate, property, notes, precious metals and many other alternative assets.

The auto-enrollment program introduced by Mark Iwry, Senior Advisor to the Secretary of the Treasury, Deputy Assistant Secretary (Retirement and Health Policy) U.S. Department of the Treasury is a very successful solution while 27 states have adopted a version and 80% plan to stay in it, according to a panel discussion at a RITA conference for IRA professionals. Retirement plan professionals can learn the latest rules and developments at the upcoming RITA conference on October 27-28th in Las Vegas. Click here to register for Winning Ways with IRAs and take advantage of early bird rates which expire 9/30.

About Retirement Industry Trust Association (RITA)
Retirement Industry Trust Association is a non-profit trade association formed in 1987 which represents trust companies, banks, third party administrators, attorneys, accountants and other service providers in the self-directed retirement plan industry.

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