Groom principal and fiduciary practice leader, Michael Kreps, weighs in on President Trump's State of the Union proposal "to offer Americans without employer-sponsored 401(k)s 'access to the same type of retirement plan offered to every federal worker" in the Bloomberg Law article, "Trump's 401(k) Push Leaves Key Details to Regulators, Congress." The article discusses "[r]egulatory and legislative hurdles, [and] unanswered practical questions, [that] will pose significant challenges as the Trump administration seeks to turn its newly announced 401(k) expansion plan into a reality."
In the article, Kreps explained, "'It just gets really complicated really quickly, and there's always a risk of unintended consequences people are going to have to work through.'" He further commented, "Launching a federally-run 401(k) plan would require a major investment in technology and integration with payroll providers 'that will take a long time to build.'" Additionally, he noted, "The administration would also have to issue 'a number of regulations' to define how the accounts work."
To read the article, click here.