See John Sullivan discuss the presidential candidates on RetireHoli(k)s.
What are the presidential candidates saying about the 401(k)?
Is it an effective retirement vehicle for the majority of American workers or a tax-code mistake in need of fixing?
In a no-holds-barred format for which they are known, Plan Design Consultants’ RetireHoli(k)s tackled the issue with guest John Sullivan, Editor-in-Chief of 401(k) Specialist, as part of its “Sheltering in Place” webinar series.
With Plan Design Consultants CEO J.D. Carlson acting as host, the panel included PDC associates Chad Johansen, Mark Palmini, Justin MacNeil and series producer Brandon Carlson.
Stocked with beer, banter and topical retirement plan information, the series also features notable industry executives and experts like American Retirement Association’s Nevin Adams; Voya Financials’ President of Retirement, Corporate 401k Market Bill Harmon; Jania Stout, Managing Director of Fiduciary Plan Advisors at HighTower; and, Alex Assaley, Managing Principal with AFS 401(k) Retirement Services.
In a BuzzFeed-style “Which type of retirement plan are you?” personality test, Carlson described President Trump as a cash balance plan and Vice President Biden as the state-run CalSavers plan.
President Donald Trump
“By the way, Mr. Trump is very good with his financial literacy,” Carlson said, referencing Trump’s high-profile 409k gaffe. “He tweeted “STOCK MARKET AT ALL-TIME HIGH! HOW ARE YOUR 409K’S DOING? 70%, 80%, 90% up? Only 50% up! What are you doing wrong?”
Sullivan responded by noting Trump’s penchant for using 401ks as a proxy to connect with the everyman, but has since gone silent in the coronavirus-driven market crash, and that the executive order would likely be the limit of Trump’s 401k policy, especially with the passage of The SECURE Act.
Senator Joe Biden
Referencing Biden’s “Plan for Older Americans,” which acknowledges the 401k’s contribution to retirement security for Americans but takes issue with the tax incentives that Biden argues go to the top 20% of income earners, Sullivan also said to watch for the reintroduction of Guaranteed Retirement Accounts (GRA).
“First floated by the New School’s Teresa Ghilarducci, it was something that was disparaged by the industry, but I don’t think many realized how much play it got outside the industry,” Sullivan said. “GRA’s were developed with Blackstone CEO Tony James, who was on the short-list to be treasury secretary has Hillary Clinton won in 2016. He will most likely be a player in a potential Biden Administration, and could reintroduce GRAs, which would be a threat to 401ks and something we should be watching as we move forward.”
In a breaking news moment on the webcast, Carlson noted that the board for CalSavers, California’s state-run retirement plan for private-sector workers without access to a defined contribution plan through their employer, was meeting to push the June 30, 2020 compliance deadline to September 30, 2020.
“All those people that signed in, you heard it here first, we’re breaking the news,” Carlson triumphantly explained.