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Big Student Loan Forgiveness Update As Education Department Clarifies Eligibility For One-Time Adjustment

Big Student Loan Forgiveness Update As Education Department Clarifies Eligibility For One-Time Adjustment

The Education and learning Section has current formal direction that appears to extend eligibility for a critical, a single-time federal college student mortgage forgiveness and relief initiative that could reward Mother or father In addition debtors.

Below are the specifics.

Biden Administration’s IDR Account Adjustment Will Lead to Pupil Mortgage Forgiveness

Previous 12 months, the Biden administration declared the IDR Account Adjustment, a 1-time resolve that will enable the Training Office to present retroactive credit score in direction of student bank loan forgiveness below Revenue Pushed Reimbursement (IDR) ideas.

IDR options make it possible for federal pupil personal loan debtors to repay their financial loans in accordance to formulation utilized to their cash flow and family size. Following 20 or 25 a long time in an IDR approach (depending on the distinct application), any remaining balance would be forgiven, while that loan forgiveness could be taxable.

Less than the unique IDR program policies, only time used in an IDR program counts in direction of a borrower’s reimbursement and loan forgiveness term. Most intervals of non-payment, these as deferments and forbearances, never depend, and financial loan consolidation can reset the clock. Several debtors were being not mindful of this, and purchaser advocates have extensive accused student personal loan servicers of improperly steering debtors into high-priced forbearances or not appropriately tracking borrowers’ progress in direction of IDR mortgage forgiveness.

In reaction to these issues, the Biden administration is rolling out the IDR Account Adjustment. “I’m unbelievably proud [of] the Biden-Harris team’s temporary changes” to vital federal scholar financial loan forgiveness programs to improve obtain, stated U.S. Secretary of Education Miguel Cardona final October.

Beneath the initiative, the Schooling Office “will perform a a single-time account adjustment to borrower accounts that will count time toward IDR forgiveness,” which include the next periods:

  • Any months in a repayment status, irrespective of the payments built, the type of federal mortgage, or the precise compensation strategy
  • 12 or extra months of consecutive forbearance, or 36 or additional months of whole forbearance
  • Any months used in economic hardship or navy deferments after 2013
  • Any months expended in any deferment (besides for in-university deferments) prior to 2013 and
  • Any time in compensation on before financial loans prior to consolidation of those people loans into a consolidation bank loan.

In accordance to Instruction Division guidance, “Any borrower with financial loans that have accrued time in reimbursement of at least 20 or 25 years [under the IDR Account Adjustment] will see automated forgiveness, even if you are not at this time on an IDR system.” A further a few to 4 million debtors will advance their progress toward eventual pupil bank loan forgiveness by several a long time as a final result of the one-time adjustment.

Direct mortgage debtors will see the changes immediately by July of 2023. Non-Immediate loan borrowers, which include FFELP borrowers, “should implement for a Direct Consolidation Financial loan by Could 1, 2023, to get the total advantages of the just one-time account adjustment,” in accordance to the Schooling Department.

Borrowers operating in public assistance occupations (i.e., for certain nonprofit and community organizations) may possibly also receive credit rating in the direction of Public Provider Financial loan Forgiveness (PSLF) below the adjustment.

Current IDR Account Adjustment Advice Good Information for Parent Plus Debtors

Last month, the Education and learning Department up to date its published assistance on the IDR Account Adjustment to suggest that federal Guardian Moreover borrowers on track for PSLF can also profit from this initiative. Guardian Additionally loans are a form of federal university student financial loan issued to the guardian of the undergraduate university student. The guardian, not the scholar or baby, is the borrower for this type of bank loan.

“These modifications will be used automatically to all PSLF-suitable Direct Loans, like consolidated and unconsolidated dad or mum As well as financial loans,” says the current guidance. This is a sizeable update, because unconsolidated Mum or dad Plus loans have generally not been suitable to conveniently receive considerably PSLF credit rating or any IDR credit rating, as they are not qualified for IDR options (which, together with the 10-calendar year Typical system, are the only PSLF-suitable compensation ideas). Even the Limited PSLF Waiver, which finished very last October, did not drastically advantage unconsolidated Mother or father Moreover loans. Dad or mum In addition financial loans can access IDR, and consequently a lot more conveniently accessibility PSLF, if they are consolidated into a federal Immediate consolidation personal loan, but time invested in repayment prior to Direct personal loan consolidation has historically not counted in the direction of financial loan forgiveness for these debtors.

“If you feel you could possibly reward, you ought to update your work certification heritage to reflect all periods of public provider work,” advises the Training Department. Borrowers can start off the system by using the on the net PSLF Enable Resource.

Guardian Plus debtors may well continue to need to consolidate their financial loans by using the Immediate consolidation bank loan system, and utilize for an IDR program, in order to make continued development toward university student personal loan forgiveness outside of the credit gained via the IDR Account Adjustment’s implementation. At this time, the only accessible IDR strategy for consolidated Guardian Additionally loans is Cash flow Contingent Repayment (ICR), the most highly-priced IDR solution. The Biden administration is acquiring a new, most likely extra cost-effective IDR plan, but it is not yet crystal clear if Parent Plus debtors would be eligible. A lot more information ought to be produced in the coming months.

Debtors must very carefully review the Instruction Department’s current steerage on the IDR Account Adjustment ahead of getting action.

This article has been updated to more accurately describe Father or mother Additionally eligibility for PSLF.

Even further College student Personal loan Forgiveness Studying

Scholar Financial loan Forgiveness Could Be Major In 2023: Here’s What To Anticipate

The University student Bank loan Pause Is In fact Top To Mortgage Forgiveness — Are Even more Extensions Coming?

Supreme Court docket Requires Upcoming Large Stage In University student Bank loan Forgiveness Cases

23,000 Student Mortgage Borrowers Will Get $19 Million To Resolve Personal debt Reduction Fraud Claims

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Exclusive: Musk’s banks to book Twitter loan losses, avoid big hits -sources

Exclusive: Musk’s banks to book Twitter loan losses, avoid big hits -sources

NEW YORK, Dec 13 (Reuters) – Some of the banking institutions that lent Elon Musk $13 billion to purchase Twitter are getting ready to e-book losses on the financial loans this quarter, but they are most likely to do so in a way that it does not become a major drag on their earnings, according to three sources with direct understanding of the problem.

Banks normally offer these types of loans to investors at the time of the offer. But Twitter’s lenders, led by Morgan Stanley (MS.N), could facial area billions of pounds in losses if they tried using to do so now, as traders shy absent from buying risky personal debt throughout a interval of economic uncertainty, marketplace contributors claimed. In addition, Twitter has observed advertisers flee amid concerns about Musk’s approach to policing tweets, hitting revenues and its means to pay out the curiosity on the credit card debt.

Banks nonetheless have to mark the mortgage to its market place value on their guides and set apart money for losses that are described in quarterly final results. In the absence of a rate decided by genuine profits of the financial debt, even so, just about every lender can decide how a lot to publish it down dependent on its market checks and judgment, in accordance to the 3 resources who are common with the approach of determining the worth of these types of loans.

The largest chunk of the credit card debt — $10 billion really worth of financial loans secured by Twitter’s belongings — might have to be created down by as considerably as 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, a single of the sources said. The strike on the bank loan, distributed among the seven financial institutions, could in all probability be managed by most of the firms without developing a substantial strike to income, the supply included.

An additional a single of the three sources with direct knowledge of the make any difference estimated that some banking institutions may possibly only consider a 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} writedown on the secured portion of the personal loan.

The deliberations of how some of these financial institutions are wondering about accounting for these losses have not been beforehand noted. They appear as Wall Road banking companies are bracing for reduce fourth-quarter earnings thanks to a slump in investment banking earnings and a rise in financial loan-decline reserves amid a weakening world financial state.

Three banking industry sources said the remaining $3 billion, which is unsecured, could lead to steeper losses for the 7 Twitter banking institutions. Reuters could not decide how considerably the banking institutions ended up setting up to compose down the unsecured portion of the financial debt.

The loan providers have considered changing the unsecured section of the debt with a bank loan to Musk backed by his shares of Tesla Inc (TSLA.O), the electrical carmaker, a person of the resources common with the talks mentioned. Musk, having said that, has stated it is very best to prevent this kind of financial loans in the recent macroeconomic natural environment. Bloomberg beforehand reported the margin mortgage risk.

Moreover Morgan Stanley, the syndicate incorporates Lender of America Corp , Barclays Plc , Mitsubishi UFJ Economic Group Inc (8306.T), BNP Paribas SA (BNPP.PA), Mizuho Money Group Inc (8411.T) and Societe Generale SA (SOGN.PA).

SocGen, Musk and representatives for Twitter did not answer to emailed requests for comment. Associates from the other banking companies declined to comment.

ACCOUNTING Versatility

Less than accounting specifications, the banks must mark the financial loan to its industry benefit when some of them report earnings for the fourth quarter in January, a number of bankers and accountants stated.

But with sector activity coming to a standstill, the financial institutions have a fair amount of money of versatility on how to benefit them, which suggests each and every one particular could benefit them in a different way. They also have leeway on how to report any generate downs and the time they just take to offer the financial debt. Leveraged loan offers just after the 2008 economical disaster took decades to apparent.

Every single financial institution would make market place checks with two or a few prospective prospective buyers to get there at a benefit of the financial loans, which an auditor would have to concur with, just one of the three sources said.

The man or woman, who is common with the wondering of one particular of the banking companies in the lending syndicate, extra that some creditors are possible to take a scaled-down hit originally and write it down more than time if valuations continue to keep having even worse.

Projected losses could also be divided in between expenditure banking and trading divisions, producing it modest adequate that it would not have to be disclosed independently, a person of the resources stated. Any writedowns would most likely be damaged into chunks and spread in excess of several months, decreasing the strike to earnings in any just one quarter, two of the sources with immediate understanding of the make any difference mentioned.

Some market contributors be expecting the losses from the financial debt to be major except if market situations improve. Two of the banking field sources mentioned if the banking companies tried using to provide the loans now, they would not get far more than 60 cents to the greenback on the secured bond and an even lower price tag on the unsecured part. That would increase up to billions of pounds in losses for the syndicate as a total.

In September, Wall Avenue lenders led by Lender of The united states endured a $700 million decline on the sale of about $4.55 billion in debt backing the leveraged buyout of business enterprise software package firm Citrix Units Inc.

Some $35 billion to $40 billion of this kind of financial loans are caught on banks’ publications, in accordance to two set earnings bankers.

Twitter’s bankers, on the other hand, are much more sanguine. “I would not bet in opposition to Elon Musk,” Morgan Stanley Main Government James Gorman mentioned in an job interview at Reuters Up coming before this thirty day period. “We really don’t get guiding that form of company and that sort of opportunity except we think it is authentic.”

Reporting by Lananh Nguyen, Saeed Azhar and Shankar Ramakrishnan in New York, further reporting from Matt Tracy, and Abigail Summerville editing by Paritosh Bansal and Claudia Parsons

Our Criteria: The Thomson Reuters Have faith in Ideas.

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A Big Gap in K-12 Leadership Prep: Teaching School Finance Skills

A Big Gap in K-12 Leadership Prep: Teaching School Finance Skills

With billions of bucks in federal pandemic support swirling close to school districts—not to point out their possess multimillion- or billion-greenback area budgets—many school-degree and district leaders are not prepared to do the heavy lifting when it will come to faculty finance.

But with principals, specially, putting their primary aim on instructional management, does that even make a difference?

College finance qualified, Marguerite Roza, the director of the Edunomics Lab at Georgetown College, thinks that the two college and district leaders need to have that knowledge.

There is still discussion above how deep educator-preparation programs need to go into school finance. Principals are envisioned to be extra targeted on instruction and instruction-associated tasks that enable academics increase.

But Roza claims that faculty leaders’ economical awareness can enable them not only come to be improved stewards of public cash, but also make decisions that would bolster their students’ instruction.

“If you look at the work of a principal—they are in a building, they supervise, frequently, in the community of $5 [million] to $20 million worthy of of community expense in children, and people investments also consider the sort of staffing,” Roza stated.

“They know a ton about what little ones need to have, what is and isn’t operating in that workers. They should then switch about and inform the district, ‘No, this is not doing the job, we can not do this once again, or this has to change.’ ”

An Edunomics Lab survey of education and learning leadership courses, which put together principals, superintendents, and other district-level administrators, from 30 top universities, launched in February, discovered that whilst extra than half—54 percent—covered points like profits structures and compliance difficulties, the greater part left their graduates with massive expertise gaps in important money locations they’re probably to wrestle with in the authentic planet.

Constructing money literacy

Fewer than 50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} protected how to read through financial files, this kind of as budgets recognize charge-profit analyses build and control the district’s or school’s budgets how allocation and spending formulas function and how paying out selections intersect with fairness, according to the survey.

In point, much less than a quarter of the courses included how district allocations perform, and just 15 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} delved into spending budget cuts and calculating tradeoffs, according to the study.

The info were being based mostly on program descriptions, syllabi, and curriculum reviewed for the preparation applications. At minimum 1 of the universities involved in the critique and that scored high utilized the faculty finance courses provided by Edunomics Lab.

Edunomics seemed at whether 8 finance-relevant places appeared in training course syllabus and curriculum. They involved subject areas these as the relationship between finance and equity and comprehending charge drivers like labor and rewards.

And when the applications included finance, it wasn’t usually in the way that was most useful to educators.

For instance, they tended to emphasis on revenues—the dollars districts and educational institutions acquire from the state and other sources— about which college and district leaders typically have small handle, and not automatically “the selections about how to devote it once it will get to districts,” Roza claimed.

“It’s sort of fascinating when definitely what they want to know is the aspect that relates to their occupation,” she claimed.

The trouble, Roza claimed, is that several principals do not know how considerably the team is costing them or that they can make superior staffing decisions to satisfy their individual school’s requirements if they comprehended the financial calculations guiding it.

A principal who understands shelling out choices, for case in point, can mount a far more strong circumstance to district officials for a counselor to work with disengaged learners if that is an emergent challenge at their university.

“They are the stewards at that creating about all those tens of millions of dollars and to not have them have that skill and be fluent in that and be capable to take part in individuals conversations, it’s like they are working powering a curtain,” she explained. “We are not passing facts back and forth.”

Roza thinks this requires to modify.

Corporations these the AASA, the Faculty Superintendents Affiliation, and some massive districts like Dallas have produced prospects for faculty and district leaders to deepen their financial knowledge.

States can also invest in constructing economic literacy among the K-12 leaders by necessitating regular college-based planning courses to consist of a foundation system of money understanding as portion of their plans, Roza mentioned.

Qualified enhancement packages these as the Texas-based Holdsworth Centre provide college and district leaders a probability to acquire a deeper comprehension of finance among other leadership traits exterior of the traditional-preparation atmosphere.

“If we establish that economical fluency early on, I feel folks will just decide on up and study more along the way as effectively,” Roza stated. “I really do not treatment if they get the teaching by way of us or any individual else, but I do believe we have to have to set a lot more emphasis on money talent setting up.”

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AZ Big Media Managing summer interns: 11 tips from small business

AZ Big Media Managing summer interns: 11 tips from small business

What are your major recommendations for taking care of summer interns at a modest organization?

To support you very best deal with summer season interns at your little enterprise, we questioned business enterprise miracles and people supervisors this problem for their finest items of guidance. From allowing them guide to clarifying intent, there are many guidelines that might enable you finest take care of and benefit from summer months interns. 

Here are 11 recommendations for taking care of summertime interns:

  • Enable Them Lead
  • Give Them Significant Do the job to Do
  • Locate that Harmony of Enjoyable and Real Work
  • Supply Flexible Hours
  • Established Distinct Workload Expectations 
  • Assign a Mentor
  • Expend 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Your Time with Them
  • Break Down Duties
  • Ask Your Interns What Their Plans are
  • Have Common Look at-ins
  • Make clear Intern Intent

 

Managing Summer Interns: 11 Tips From Small Business

 

Let Them Guide

As a company chief, your main aim is on executing the eyesight and driving outcomes. You are usually looking for opportunities to delegate so you can focus on the big picture. This is a ideal option to do just that by permitting interns to just take the lead on certain projects or duties. Not only will this no cost up your time, but it will also give interns a perception of ownership and responsibility. They will be in a position to see firsthand how their perform impacts the organization and its bottom line.

Demi Yilmaz, Colonist.io

 

Give Them Meaningful Perform to Do

I would say the most important matter is to give them meaningful do the job to do. It can be tempting to just have them do active get the job done or operate errands, but that’s not going to give them a fantastic knowledge or assistance your enterprise.

Try to feel of responsibilities that will assistance further their abilities and also be advantageous to your enterprise. It’s also vital to give them opinions and verify-in with how they are executing routinely. You want them to sense like they are portion of the crew and not just an afterthought. Last but not least, make confident you just take advantage of their clean viewpoint! They can give new insights and tips that you may perhaps not have imagined of in advance of.

Ilija Sekulov, Mailbutler

 

Find that Harmony of Enjoyable and Serious Perform

Running summer time interns can be a difficult company. If you do the job them way too challenging and operate an austere internship plan, there’s no opportunity you are going to get them to occur back—assuming which is your purpose. Most of these little ones are continue to in faculty and not utilized to the rigors of actual do the job. So, you want to make the internship fun and fascinating to capture their interest and deliver a constructive encounter. 

However, it just can’t be all joyful hrs, corporation outings, and free lunches. You also want to supply them with true function, so they can get a flavor for what it’s like to perform in a genuine business enterprise environment. Therefore, it’s discovering that harmony among work and engage in that is complicated. My personal suggestion is to treat them like any other personnel in conditions of giving them actual function, but layer in extra coaching and enjoyable actions. As a supervisor, interact with them as substantially as achievable to deliver a social encounter, but make guaranteed they are discovering and acquiring a very good look at of your company’s genuine operations.

John Ross, Examination Prep Perception

 

Present Versatile Several hours

They’re interns and not whole-time workers. Interns want dollars but they appreciate freedom. If you are working from property, providing flexible several hours assists you land talented interns in your organization. Everyone’s operate program is different, and by giving versatile perform schedules, you are assisting them in acquiring their personal timings. 

They can do the job when they experience the most productive. This allows them and you bring outcomes and grow the business. Also, interns are additional captivated to providers that provide flexible functioning hrs alternatively than fastened timings. In circumstance you come across wonderful expertise, versatile timings will help you preserve associations with them even following their summer season break is around. Given that they can cope with the two study and get the job done because of to versatile timings, they’ll be content to operate with you.

Isaac Robertson, Whole Form

 

Set Apparent Workload Expectations 

Connect your anticipations with regards to workload, doing work hrs, and split situations. What jobs do you need to have assistance with? What jobs can they operate on? Then, supply clear instructions and pointers for just about every activity or task. If feasible, hand them a listing of methods they can use to total their function. Most importantly, make by yourself accessible to response any issues they may have along the way. You are their greatest source!

Appropriately, assure your interns comprehend your company’s insurance policies on private details and social media use. Location apparent expectations from the commencing will help with averting any misunderstandings or confusion down the highway.

Chris Lewandowski, Princess Dental Staffing

 

Assign a Mentor

Assign the intern a mentor in the firm who is not their speedy supervisor. This will give them an chance to network throughout unique departments and problem on their own to operate with diverse temperament kinds and age teams. This mentor can function as a benign confidant for the intern to categorical hardships, worries or probable optimization strategies for workflow.

Anamika Goyal, Cottage

 

Devote 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of Your Time with Them

As small business enterprise proprietors, we’re occupied, but creating it a precedence to teach college students can sense like an extra thing to do on an presently very long to-do list. But paying out 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of your time upfront to coach them is truly worth it when you see how a lot they can take off your plate.

I’m performing with a team of pupils this summer time. My assistance is to make confident they have adequate information to total their very first handful of duties. That features offering them access to websites, pictures or social accounts. I also give them files about aims and guides. 

I check out to commit 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of my time with them when they initially get begun, for education and thoughts. This makes certain they are established up for success. Following getting accessible for 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of your time you can then start out to slash again, and they’ll be on monitor to finishing your 1st task correctly. You may not even need to give that considerably of your time to them. You’ll be stunned with how minor of your time they consider up.

Michelle Beauregard, Quietly

 

Split Down Responsibilities

Summertime interns can be extremely valuable for a little enterprise, but offering them much too much accountability or expecting them to fully grasp how to do points quickly can result in extra harm than great. 

The greatest tip for managing summer time interns at a modest small business is to crack down tasks into more compact duties that can help them understand how to effectively do work opportunities, and put their mind at relieve. It also lets you to make sure that each and every action of the way is finished appropriately, to teach the intern vital competencies and aid retain points arranged, which advantages the business enterprise in the method.

Nicole Thelin, Very low Money Relief

 

Inquire Your Interns What Their Aims are

Though you may already have a excellent idea of what responsibilities or duties you want your interns to protect in the course of their time with you, it’s crucial to also question them what their possess plans or aims are for the duration of their internship. Not only does this show that you care about the worth they’re obtaining from their time in the business, but it can also tell the roles and obligations you allocate to them, to guarantee a good suit.

Using the time to do this usually means your interns are probable to be happier, far more productive and talk extra extremely of your firm.

Saadia Hussain, Pearl Scan

 

Have Typical Check out-ins

Be positive to have normal verify-ins with interns. This could be on a weekly basis or to start with detail in the morning to examine responsibilities for the day. It is important to use this chance as a instructing moment, as well as a time to go over tasks they may well be doing the job on. They are there to find out and support the enterprise as substantially as they can, so it is crucial that equally functions are performing with each other.

Christy Pyrz, Paradigm Peptides

 

Make clear Intern Intent

My best suggestion for handling summer season interns is to have crystal clear advice and achievable targets that the intern will master from. No matter whether transferring among departments to understand an array of expertise or focus on a person region, arrive up with a plan that equally can help the organization and helps the intern.

I consider it can be truly beneficial to manage a phone with the intern beforehand to inquire what unique issues they are hoping to learn or build in, whilst also explaining some of the simple-degree tasks that will be required of them as part of the role. This can guarantee that the intern is aware what to count on, isn’t dissatisfied and is obtaining a really fulfilling final result, though generating absolutely sure your company is also getting what it wants in phrases of that employee.

Phil Scully, Freelance

 

 

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A full recap of the Fed’s rate hike and big market rally

A full recap of the Fed’s rate hike and big market rally

Gary Cohn says Powell gave the market the policy transparency it wanted

Former Goldman Sachs President Gary Cohn told CNBC he thinks Fed Chair Jerome Powell “drove it right down the middle of the road” during his news conference, perfectly meeting the market’s expectations as evidenced by the relief rally in stocks. 

In particular, Cohn said the market appreciated Powell’s clear communication around the Fed’s approach to quantitative tightening. “The market has been trained to have transparency, and we got transparency,” said Cohn, who also led the National Economic Council under former President Donald Trump.

He added that he believes Powell laid the roadmap for two more 50 basis point interest rate hikes at upcoming meetings.

— Kevin Stankiewicz

Stocks rally broadly after Powell comments, financials and tech jump

U.S. stocks rallied across the board Wednesday after Fed Chair Powell in the press conference ruled out larger rate hikes and emphasized the possibility of a soft landing — tamping down inflation without inducing a recession.

All 11 S&P 500 sectors were positive on the day in the last hour of trading.

Stocks leveraged to an improving economy were among the biggest winners. Energy was the top-performing sector. Financial names were also a leading group, with names like Bank of America and Wells Fargo jumping roughly 4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

Technology stocks, which have been under pressure, also climbed. Communication services and information tech were among the top S&P 500 sectors. The moves came as the benchmark 10-year Treasury yield dipped. Apple rose more than 3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, and Meta Platforms gained roughly 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

—Hannah Miao

Market is applauding Powell’s comments, LPL’s Krosby says

The major averages were up sharply heading into the close, with the Dow up 900 points.

“The market is applauding Chairman Powell’s comments that the economy remains strong thanks to solid corporate balance sheets and still cash-rich consumers,: said Quincy Krosby, chief equity strategist at LPL Financial. “Moreover, he suggested that perhaps the worst of the sharp move in inflationary pressures may be poised to ease.”

“Still, Powell underscored that while the FOMC remains data dependent for each meeting, the market can expect 50 basis point hikes at the next two meetings. He made it clear that corralling inflationary pressures is crucial,” Krosby added.

—Fred Imbert

Powell news conference wraps up

Federal Reserve Chairman Jerome Powell has concluded an eventful news conference, which saw the major U.S. stock benchmarks rally on remarks that the Fed would not raise rates by 75 basis points.

—Fred Imbert

Federal Reserve will restore stable pricing as ‘quickly and effectively’ as it can, Powell says

Chairman Jerome Powell believes the Federal Reserve has a “good chance” of restoring stable prices without causing a strong increase in unemployment.

“We need to do everything we can to restore stable prices as quickly and effectively as we can,” Powell said. “We think we have a good chance to do it without a significant increase in unemployment or a really sharp slowdown.” 

While the move may not be “pleasant” and requires higher rates in the short-term, everyone will benefit in the long run, Powell said. Those on fixed income or lower end of income distribution particularly benefit from stable prices, he added.

“We think about the medium and longer-term and everyone will be better off if we can get this job done,” he said. “The sooner the better.”

— Samantha Subin

Powell’s comments on rates, economy soothed investors and triggered rally

State Street Global Advisors chief investment strategist Michael Arone said the Federal Reserve delivered on its guidance and eased investors’ concerns about the path of its rate hiking.

He said Fed Chairman Jerome Powell soothed markets with his comments, including when he said a 75 basis point hike was not currently under consideration. The Fed raised interest rates by a half percent Wednesday afternoon, the biggest hike since the year 2000.

“I think there’s three things” in Powell’s comments, Arone said. “They’re not actively considering 75 basis points. There’s some evidence that inflation may have peaked. And thirdly, he acknowledged it won’t be easy but he thinks a soft landing is still possible because households, businesses and the labor markets remain in good shape.”

The chairman also said the Fed could consider 50 basis point hikes at the next couple of meetings, and Arone said it was a positive that Powell limited the half point hikes to two meetings.

The major averages were up sharply at around 3:15 p.m. ET, with the Dow up more than 700 points. The S&P 500 and Nasdaq are up more than 2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} each.

—Patti Domm

Strategist breaks down why stocks are rallying

Adam Crisafulli, founder of Vital Knowledge, broke down why stocks rallied during Powell’s press conference.

“Stocks were excited about Powell refuting talk of 75bp increases and his (very modest) optimism about recent PCE trends, but his rhetoric about combating price increases was even more forceful than before,” Crisafulli said.

— Yun Li

Powell says Fed policies are ‘famously blunt tools’

Fed Chair Jerome Powell said the central bank has a “good chance” to curb inflation without inducing a recession, but noted challenges in that endeavor.

“We don’t have precision surgical tools. We have essentially interest rates, the balance sheet and forward guidance and they’re … famously blunt tools,” Powell said at the press conference.

“No one thinks this will be easy. No one thinks it’s straightforward. But there’s certainly a plausible path to this,” he added.

—Hannah Miao

Traders reduced bets for rate hikes this year

Traders are reducing thier expectations for Federal Reserve rate hikes this year.

Traders had been expecting a possible 75 basis point rate hike in June, but Fed Chairman Jerome Powell said that is not currently under consideration. The chairman also said the Fed could consider 50 basis point hikes at the next couple of meetings.

According to Wells Fargo’s Michael Schumacher, fed funds futures were pricing in 52 basis points of hiking in June after Powell’s comment, down from 61 basis points before the 2 p.m. ET Fed statement.

The futures market also shows traders reduced expectations for rate hikes this year. The futures market is now pricing in a fed funds rate of 2.80{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} at the end of the year, down from 2.96{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} before the Fed’s statement.

The Fed announced it was raising the fed funds rate by a half percentage point and said it “remains highly attentive to inflation risks.”

—Patti Domm

Powell emphasizes Fed policy works on demand, not supply

Fed Chair Jerome Powell reiterated the central bank’s policy fights inflation through curbing demand, and cannot address supply side issues.

“Our tools don’t really work on supply shocks, our tools work on demand,” Powell said at the post-policy meeting press conference.

The Fed chair also highlighted the war in Ukraine and Covid case surges in China as two geopolitical issues that could further exacerbate global supply chain disruptions.

“For both the situation in Ukraine and the situation in China, they’re likely to both add to headline inflation,” Powell said. “They’re both capable of preventing further progress in supply chains … or even making supply chains temporarily worse.”

—Hannah Miao

Powell says he’s not ‘actively considering’ 75 basis point increase

Federal Reserve Chairman Jerome Powell said the central bank is not “actively considering” a 75 basis point increase.

“So a 75 basis point increase is not something that committee is actively considering,” Powell said. “I think expectations are that we’ll start to see inflation, you know, flattening out.”

“It’s a very difficult environment to try to give forward guidance 60, 90 days in advance, there’s just so many things that can happen in the economy around the world. So, you know, we’re leaving ourselves room to look at the data and make this decision as we get there.”

— Sarah Min

Powell: The labor market is ‘extremely tight’

“The labor market has continued to strengthen and is extremely tight,” according to Federal Reserve Chairman Jerome Powell.

The chairman noted that labor supply remains subdued even as labor demand gains strength. Employment rose by 1.7 million jobs over the first three months of the year, and the unemployment rate has dropped to a near five-decade low of 3.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, according to the Fed chair.

The result is employers are having difficulties filling job openings and wages are rising at the fastest pace in many years, Powell said.

— Sarah Min

Powell sees ‘good chance’ of a soft-landing for economy

Federal Reserve Chairman Jerome Powell said the central bank has a “good chance” of achieving a soft landing for the U.S. economy as it hikes rates to combat rising inflation.

“I would say I think we have a good chance to have a soft or softish landing, or outcome if you will,” Powell said.

While maintaining a soft landing will be a challenge, Powell pointed to the resilient labor market, noting that households and businesses remain in “strong financial shape.”

“It doesn’t seem to be anywhere close to a downturn,” Powell said. “Therefore, the economy is strong and is well-positioned to handle tighter monetary policy.”

—Samantha Subin

Major averages rally after Powell rules out 75 basis point hike

The Dow, S&P 500 and Nasdaq jumped to their highs of the day after Fed Chairman Jerome Powell said the central bank wasn’t considering a 75 basis point rate hike.

The Dow was up more than 400 points, or 1.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. The S&P 500 traded 1.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} higher, and the Nasdaq advanced 1.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

—Fred Imbert

Powell says half point increases at next FOMC meetings are on the table

Fed Chairman Jerome Powell said Wednesday that, with the labor market being “extremely tight” and inflation “much too high,” the Federal Open Market Committee could continue to raise the Fed Funds rate over the next few months.

“We are on a path to move our policy rate expeditiously to more normal levels,” he said. “Assuming that economic and financial conditions evolve in line with expectations, there is a broad sense on the committee that additional 50 basis point increases should be on the table at the next couple of meetings.”

He added that the committee also decided to begin the process of reducing its balance sheet, which will play an important role in forming the stance of monetary policy.

— Tanaya Macheel

Powell: Fed is ‘moving expeditiously’ to bring down inflation

The Fed is “moving expeditiously” to combat rising inflation which has hard-hit consumers, said Chairman Jerome Powell to start the central bank’s post-announcement news conference.

“Inflation is much too high and we understand the hardship it is causing, and we are moving expeditiously to bring it back down,” he said. “We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses.”

Powell added that the economy and country have “proved resilient” as they fight the conditions over the past two years and said that bringing down inflation is crucial to creating a “sustained period” of strong labor market conditions.

—Samantha Subin

Oil’s surge adds to inflationary pressures

Federal Reserve Chairman Jerome Powell pointed to the rapid rise in commodity prices, prompted by Russia’s war, as adding to inflationary pressures across the economy.

“The surge in prices of crude oil and other commodities that resulted from Russia’s invasion of Ukraine is creating additional upward pressure on inflation,” he said Wednesday.

West Texas Intermediate crude futures, the U.S. oil benchmark, traded around $107.51 per barrel Wednesday. The contract is up more than 40{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} this year, which has sent gas prices at the pump to record highs.

— Pippa Stevens

Dow briefly erases gains as Powell kicks off news conference

The Dow Jones Industrial Average briefly turned negative on the day as Fed Chairman Jerome Powell started his news conference.

The 30-stock average was last up 64 points, or 0.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. The S&P 500 hovered around the flatline, while the Nasdaq Composite was down 0.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} as of 2:36 p.m. ET.

—Fred Imbert

Market action shows Fed’s rate hike well telegraphed, strategist says

The Fed just announced its biggest rate increase in two decades, and yet stocks are not selling off.

“It’s certainly heady days when the market doesn’t blink at the most aggressive rate hike in 22 years, but keep in mind this was extremely well-telegraphed and priced in,” said Mike Loewengart, managing director of investment strategy at E-Trade. “So far though, we don’t have much to go on in terms of the pace and magnitude of hikes to come.”

—Yun Li

Market relieved Fed wasn’t more hawkish, State Street’s Arone says

State Street Global Advisors chief investment strategist Michael Arone said the market is breathing a sigh of relief after the Fed’s latest announcement.

“I think right now there’s relief it wasn’t more hawkish,” Arone said, noting the Fed is also pushing the idea that it will keep raising rates.

“I think one of the things that was most interesting was that the Fed decided to shift the description of transitory from inflation to the economy,” he added. “They acknowledged the weakness in the economy, but their language suggested this was temporary and household spending and business spending remains strong. I thought that was an interesting way for them to support the need for more rate hikes.”

—Patti Domm

Dow and S&P 500 rise to session highs after rate hike

The Dow and S&P 500 rose to their highs of the day shortly after the Fed announced its latest decision on monetary policy.

At one point, the Dow was up as much as 255.77 points, or 0.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. The S&P 500 was briefly up 0.86{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. Both benchmarks have since eased from those levels, but remain higher on the day.

—Fred Imbert

What changed in the Fed statement

Key changes to the statement include from the March 16 meeting include the central bank noting that “COVID-related lockdowns in China are likely to exacerbate supply chain disruptions. The Committee is highly attentive to inflation risks.”

Click here to see what else has changed in the statement.

—Fred Imbert, Hannah Miao

Fed raises rates by 50 basis points, biggest hike in 2 decades

The Fed raised rates by 50 basis points, marking the central bank’s biggest rate hike since 2000.

Wednesday’s statement noted that economic activity “edged down in the first quarter” but noted that “household spending and business fixed investment remained strong.” Inflation “remains elevated,” the statement said.

The Fed also said it will begin reducing its massive $9 trillion balance sheet on June 1.

—Fred Imbert

Trading strategies for the post-Fed market

Citi says stocks have further to fall before the Fed rethinks rate hikes

Historically, the market could count on the Fed to step in with easy policy to help limit big losses in equities. But with inflation running at 40-year highs, Citi analysts say the central bank could wait longer to take its foot off the breaks.

Data suggest the Fed could wait for the S&P 500 to sink to the 3,800 level, or 9{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} below Tuesday’s close.

“High inflation constrains the Fed, making easing monetary policy less likely if growth (or markets) fall,” Citi analyst Alexander Saunders said Wednesday. “We have long argued that elevated inflation would put the Fed in a bind — when growth weakens they would not be willing to or able to ride to the rescue by loosening monetary policy.”

— Tanaya Macheel

History shows these stocks beat the market as short-term rates climb

Short-term interest rates are on a tear this year, with the 2-year Treasury yield nearly quadrupling in 2022. With the Federal Reserve expected to hike the benchmark fed funds rate again in its May meeting, CNBC Pro screened for stocks that have outperformed during previous periods of rising short-term rates. Take a look at our list on CNBC Pro.

One name to emerge from our historical analysis is financial services firm Charles Schwab. The company benefits from rising rates in a number of ways. For example, the firm reinvests its customer balances at higher yields, while the rate it pays on those balances lags behind, widening the net interest margin. Sure enough, Schwab shares are up more than 5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} this week ahead of the Fed meeting statement release and press conference.

—Hannah Miao

Stocks, bonds struggle since first hike

The first Fed hike in March didn’t do much to calm markets.

Stocks initially rallied after the March Fed meeting, with the S&P 500 gaining more than 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in the back half of the month. However, after a rough April, the broad market index has hit new lows for the year. The Nasdaq Composite has had an even rougher time and is down nearly 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the year.

The sell-off in bonds has been even more dramatic. The 10-year Treasury yield was at 2.16{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} on March 15, the day before the first hike. That benchmark yield has traded above 3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} several times this week.

— Jesse Pound

The case for a post-Fed relief rally

The market is so ready for the Federal Reserve’s big rate hike later on Wednesday that it could see a relief rally once it has passed.

DataTrek’s Nicholas Colas noted that the market’s set-up heading into the Fed decision “is a near carbon copy” of the last two meetings. After those meetings, the S&P 500 rallied between 5.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 6.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} in the following one to two weeks, Colas said.

BlackRock’s Rick Rieder has also noted that the Fed could spark a relief rally, adding that the recent market sell-off could be nearing its end.

Stocks are coming off a horrible April, with the S&P 500 falling more than 8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for its biggest monthly decline since March 2020.

—Fred Imbert

50 basis point rate hike expected

The consensus on Wall Street is for the Federal Reserve to raise rates by 50 basis points Wednesday. However, some investors still worry that Fed Chairman Jerome Powell could signal an even more aggressive monetary policy stance, as the central bank tries to stave off the strongest inflationary pressures seen in decades.

“I think they’re going 50 [basis points], and it seems like they’re dead set on hiking rates enough to kill inflation,” Jim Caron, chief fixed income strategist on the global fixed income team at Morgan Stanley Investment Management, told CNBC earlier this week. “But that’s the real debate. Are they trying to get to target inflation by 2024? If they are, the wage inflation is pretty high and that will require even more tightening than the Fed is projecting.”

—Fred Imbert, Patti Domm

Posted on

Big changes are coming for your 401(k). Here’s what you need to know

Big changes are coming for your 401(k). Here’s what you need to know

Now, Congress is looking to help Americans save by bolstering 401(k) programs — the tax-deferred, company-sponsored retirement accounts to which employees can contribute income, and employers can match their contributions.

A new bill, expected to reach President Joe Biden’s desk by the end of the year, could require most employer-sponsored retirement plans to enroll their workers automatically, making it easier for student-loan borrowers to save, and for older workers to make catch-up contributions. It will also lower costs for smaller businesses.

Retirement savings in the United States were long thought of as a three-legged stool. Americans had pension plans, Social Security benefits, and defined contribution plans like the 401(k). Not any more.

Pension plans are nearly extinct. About half of private sector workers were covered by those so-called defined-benefit plans in the mid-1980s, but by 2021 only 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of private sector workers had them.
Social Security payments still provide about 90{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of income for a quarter of older adults, according to Social Security Agency surveys. But the Social Security trust fund is facing a 75-year deficit, and without intervention it will be depleted by the mid-2030s. Lawmakers have faced a decades long political stalemate on how to fix it.
What’s left is the 401(k), which 68{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of private industry workers have access to, but only 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} use.
Some 401(k)s will soon let you invest in crypto

“I don’t think it was ever anticipated that this would be the primary leg of the stool,” said Jonathan Barber, head of compensation and benefits policy research at Ayco Personal Financial Management, a unit of Goldman Sachs that provides investment services to hundreds of US companies and more than a million corporate employees.

Indeed, the 401(k) was never designed to be the primary retirement tool for Americans when it was introduced into the US tax code in 1978. “When it works, it works really well,” said Sri Reddy, senior vice president of retirement and income solutions for Principal Financial Group.

The 401(k) naturally appeals as a savings vehicle to Americans who bring in more money, say critics. Under the current plan, an employee in the highest tax bracket saves 37{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}. But an employee in the lowest tax bracket would gain a pre-tax advantage of saving only 10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} on deferred income.

The tax breaks for these retirement savings are expected to cost the government nearly $200 billion this year, with most of those benefits going to the top 20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of earners, according to the Center on Budget and Policy Priorities.
Less than 40{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of lower-paid workers have retirement accounts, compared with 80{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of middle- and upper-income families, according to Vanguard. Making a 401(k) plan more accessible doesn’t help Americans who don’t have money to save in the first place.

Still, Congress thinks there’s a solution.

In late 2019, one of the most significant pieces of retirement legislation in the past 15 years, was signed into law by President Donald Trump: the bipartisan Setting Every Community Up for Retirement Enhancement, or SECURE Act. The bill removed maximum age limits on retirement contributions, provided tax credits for small businesses to offer their employees 401(k) plans, and extended retirement benefits to some long-term but part-time employees.

Last week Congress almost unanimously passed another bill, SECURE 2.0, that has even broader changes. The Senate is expected to pass its version in the coming weeks.

Here’s a look at how the primary retirement savings plan in the US may soon change.

Automatic enrollment

In what would be the largest change to the 401(k) program, SECURE 2.0 would require employers to automatically enroll all eligible workers into their 401(k) plans at a savings rate of 3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of salary. (Many employees currently have to opt in and then choose their contribution level.) The new rule also applies to the 403(b), a similar program for employees of certain public and tax-exempt organizations.

Enrolled workers’ contribution rates would be automatically increased each year by 1{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} until their contribution reaches 10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} annually.

While workers have the option to opt out of the plan or change their contribution level after they enroll, automatically enrolling workers into these plans would make a huge change in younger and low-waged employees’ participation in the program.

A 2012 study cited in the SECURE 2.0 bill found that, “[t]he most dramatic increases in enrollment rates are among younger, low-paid employees, and the racial gap in participation rates is nearly eliminated among employees subject to auto-enrollment.”

About one in six of employers already offer automatic enrollment, and about 90{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of new hires who use them participate in retirement plans, compared with just 28{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} under voluntary enrollment, according to a recent study by Vanguard, the largest provider of mutual funds in the United States.

Pre-retirees save more

Older workers who are between the ages of 62 and 64 can increase their catch-up contributions to $10,000 a year, up from $6,500 now. Beginning in 2023, these catch-up contributions would be taxed as Roth contributions, meaning they’d be taxed before being invested for retirement, though earnings would be indexed to inflation.

People generally earn more as they age, said Reddy, and people in their 60s are typically earning more than they spend. Giving them the ability to increase their contributions makes a huge difference in retirement savings. “If you have people who are motivated and have incremental means, it’s a wonderful way of helping them get caught up for retirement,” he said.

Barber, who heads up benefits research at Goldman Sachs’ Ayco Personal Financial Management, worries that this change may be overly complex.

Currently, most 401(k) contributions come from employees’ paychecks pre-tax, so investors don’t really feel the bite until they’re ready to withdraw their savings. Under the new plan, the catch-up contribution will be raised, but employees must pay taxes before they contribute.

For investors, “that might be a shock to some people who don’t understand the financial impact of that, especially if they’ve never had a Roth account,” said Barber.

Congrats on your first job! Here's what to do with your 401(k)

Pay off student loan debt while saving

About 43.4 million borrowers in the United States have federal student loan debt, totaling a whopping $1.7 trillion, and many employees tend to forgo saving for retirement until they pay their loans in full.

Losing out on those early years of potential savings puts them at a significant disadvantage. The plan has a solution to that.

Employers could treat student loan repayments as elective retirement account deferrals, and provide a matching contribution to their 401(k). So if you pay off $1,000 in student loan debt, it would be the same as putting $1,000 into a retirement plan, as far as matching goes. If a company matches by 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, that’s an extra $60 in savings.

“The earlier you do [invest], the more those investment gains can multiply,” said T. Lake Moore V, an employee benefits attorney at McAfee & Taft.

Delay mandatory withdrawals and limit tax penalties

Americans are retiring later and living longer. Secure 2.0 lifts the minimum age at which enrollees must begin withdrawing money from their accounts each year to 75 from 72. That allows for three additional years of tax-free growth on their retirement investments.

(The penalty for those who fail to withdraw the required minimum from their account after 75 would be halved, to 25{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}.

Part-time workers can contribute

Under the proposed act, companies that offer a 401(k) plan would be required to allow part-time employees who work at least 500 hours a year for two years, (the equivalent of just under 10 hours a week) to contribute to a retirement account. That would include part-time workers, gig employees, freelancers, caregivers and independent contractors.

Additional provisions

The plan would also extend tax credits to small businesses for providing greater access to retirement plans for their workers, and create an online database for Americans to locate lost retirement funds.