INTRODUCTION -

Now that §401(k) plans have replaced traditional pension plans as the overwhelming type of employer-sponsored type of retirement plan, there is a growing concern that many employees are not equipped to make informed and appropriate decisions regarding the retirement savings that they have accumulated in a §401(k) plan. This concern is part of a broader set of societal quandaries, sometimes referred to as a lack of ‘‘financial literacy,’’ one of the other manifestations of which is a wide-spread failure of Americans to properly save for retirement at all.

Originally published on June 7, 2019, in the Tax Management Compensation Planning Journal (Vol. 47 No. 6).