Question: What guidelines concerning saving for retirement can financial institutions offer their customers?
Answer:
In September 2009, President Barack Obama said that the Treasury Department and the IRS will issue guidance that will provide incentives for Americans to set aside money in their retirement plans. This will enable employers to automatically enroll workers in 401(k) plans and let taxpayers use their tax refunds to buy U.S. savings bonds. It is important that financial institutions:
Educate customers that the U.S. government wants hard working, responsible Americans to be rewarded, ensuring that they can save for and secure their retirement.
Inform customers that by the 2010 tax season, taxpayers will be able to choose to buy savings bonds with their tax refund by indicating it on their tax return and it doesn't require opening a Treasury account.
Encourage customers to save for retirement to maintain their current standard of living.
Understand the latest legislation governing 401(k) plans, including contribution limits, disbursements, and any penalties for early withdrawal.
Supply customers and employees with reference material about 401(k)s to confirm and enhance understanding of these accounts and retirement planning. These are not new rules - they are commonsense guidelines.
Train all employees on the latest retirement guidelines so that they can thoroughly assist customers with their retirement planning.
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