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5500 Preparer's Manual for 2012 Plan Years
The premier resource in the field of Form 5500 preparation, 5500 Preparer's Manual will help you handle the required annual Form 5500 filings for both pension benefits and welfare benefit plans.
from Spencer’s Benefits Reports: Nearly one-fifth (18%) of 750 individuals surveyed by Bank of America have prematurely withdrawn assets from their retirement accounts because of recent economic conditions. The leading reasons for the premature withdrawals are to pay off credit card debt (26%), to pay down mortgages (22%), and the loss of a job (22%). The 2008 Bank of America Retirement Savings Survey was conducted by telephone in early November with 750 people from the general public and 250 affluent individuals who have between $100,000 and $3 million of investable assets.
Despite the recent economic turmoil, 68% of the general public and 62% of the affluent individuals have not changed the way that they save, invest, or manage their retirement assets in the last three months. In addition, 44% of the general population and 41% of the affluent individuals do not plan to change the way that they save or invest for retirement in 2009. However, 16% of the general population indicate that they might have to forgo making retirement savings contributions next year.
The use of liquid accounts, such as savings accounts, where cash can be accessed quickly and easily, was reported by 44% of the general public and 61% of the affluent individuals, the survey found.
More than two-fifths (43%) of the general population and more than one-third (36%) of affluent Americans said that the current economic conditions have pushed back their expected retirement age.
The survey found that participants also are considering lifestyle changes when they retire in response to the recent economic turmoil. Cost efficiency (undefined by the survey) is something that 44% of the general population will pursue in retirement, while 29% are considering working part-time in retirement and 27% are considering relocating to an area with a lower cost of living. Half of the affluent individuals (50%) plan to pursue a more cost-effective lifestyle.
A 401(k) plan or other defined contribution plan is the primary source of retirement savings for 40% of the general public and 45% of the affluent individuals, the survey found. However, 37% of the general public and 33% of the affluent individuals do not participate in a 401(k) or IRC Sec. 403(b) plan even though they have access to one. The survey also found that 25% of the general public and 33% of the affluent individuals still have assets in the 401(k) or Sec. 403(b) plans of former employers, and nearly half of these people plan to keep their assets in the plans of their former employers.
A copy of the press release and the survey can be obtained through the Bank of America press office at http://www.bankofamerica.com.
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