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| e_pang |
 Posted: Wed Sep 13, 2006 5:07 am Post subject: Pension Protection Act of 2006 |
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Investing Sr. Associate
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Could some one please help explain to me in simple terms what or how the Pension Protection Act of 2006 will affect the come person's 401K or IRA account?
I am trying to understand a little of this, but it still seems a little confusing to me, but just trying to learn how this will affect the average joe that is investing! |
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| efflandt |
| Posted: Fri Sep 15, 2006 5:03 pm Post subject: |
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Investing Manager
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I haven't gone over it all. But besides shoring up insurance that pensions will live up to their promises, it extends some things that were already in place, but due to expire in a couple of years, and allows people who otherwise were not eligible to contribute or convert IRA money to a Roth to convert IRA money to a Roth IRA at a future date.
It also allows employers to have retirement plans [like 401(k)] where people would have to opt-out if they did not want to participate (instead of opt-in) to encourage people to start saving towards retirement.
It also added some options about how inherited retirement funds can be distributed.
A fact sheet from the Whitehouse is at http://www.whitehouse.gov/news/releases/2006/08/20060817.html or more details are at http://www.house.gov/ed_workforce/issues/109th/workforce/pension/pension.htm |
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