The New York City Council has passed a bill mandating an auto-enrollment individual retirement account program for employees of private-sector firms that do not offer a retirement plan and have five or more workers.
The bill takes effect in 90 days, but the city retirement security board, which the City Council created in companion legislation, has up to two years to implement the program.
The default employee contribution rate under the new plan would be 5%, up to the annual IRA maximum contribution of $6,000 (or $7,000 for those who are 50 or older). But employees can adjust that contribution rate higher or lower, or opt out of the auto IRA at any time. The plan would be portable and employers do not have to contribute on behalf of employees.
Out of roughly 3.5 million private-sector workers in New York City, only 41% have access to an employer-sponsored retirement plan, lower than the national average (53%), and down from 49% a decade ago, the city said in a release, noting that 40% of New Yorkers near retirement age have less than $10,000 saved for retirement.
States have been at the forefront of establishing auto-IRA programs, with programs currently up and running in states including California, Illinois and Oregon. But until New York's move, Seattle was the only city to have set up an auto-IRA.
Vanilla is extending its estate planning tech to Callan Family Office's ultra-high-net-worth business, while WealthFeed's organic growth engine will now be available to roughly 100 advisors at The Mather Group.
“We are helping families take an important first step toward building a financial foundation for the next generation,” said Franklin Templeton CEO Jenny Johnson
Richard Brothers Financial Advisors joins the fee-only RIA, adding its first Maine office and $240 million in client assets
Cleveland RIA grows to $68 billion in assets as Philadelphia team, deepening its high-net-worth and retirement-plan practice.
Financial planning leaders say unresolved rules on fees, Roth conversions and financial aid complicate comparisons with 529 plans.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
