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With stock market charts resembling the contours of a roller-coaster ride in recent days, many Americans could be forgiven for eyeing their 401(k)s with a little concern. Retirement savings are crucial to the financial well-being of millions of especially older people in the U.S., so the concern is understandable. But just how worried should people be by market fluctuations? And just how big a hit do 401(k)s take when markets fall? The Conversation turned to Western Governors Universitys Ronald Premuroso, an expert in this area, for answers. What is a 401(k)? Simply put, a 401(k) is an employer-sponsored retirement savings plan in which employees contribute a portion of their compensation on a tax-deferred basis. The employee is eligible at any age to contribute to a 401(k) plan and has the option to pay into these plans throughout their employment. Many employers match some or all of an employees contributions, making the plan even more attractive. What about withdrawals? Under Internal Revenue Service rules, someone with a 401(k) is required to start making monetary withdrawals from their plan when they reach age 73. Some people start withdrawing at an earlier age. Someone with a 401(k) can withdraw funds from the plan early, and at any time. But the money amounts withdrawn will typically be deemed taxable income. In addition, those age 59 and a half and under will likely face a 10% penalty on the withdrawal, unless the employers plan allows for hardship distributions, early withdrawals or loans from your plan account. The IRS has specific rules for these early withdrawals; if you find yourself in this situation, you should get help from a tax professional. All withdrawals starting at age 73, which tax professionals call RMDs, are then taxable in retirement presumably at a lower tax rate than the employee was subject to while employed and working. So these withdrawals starting at age 73 can be a very tax-efficient way of financial planning, including personal income tax planning, for later in life, especially in ones retirement years. Again, its important to get help from a tax professional to make sure you meet the IRS RMD dollar withdrawal requirements once you start withdrawing. In calendar-year 2025, the most that an employee can contribute to a tax-deferred 401(k) plan annually is US$23,500, including the employers match. Super catch-up contributions are allowed for employees over the age of 50 to their employers 401(k) plan each year indexed to inflation. In 2025, super catch-up contributions allow individuals age 50 and older to contribute an additional $7,500 beyond the standard limit, bringing their total annual contribution to $31,000. For those turning age 60, 61, 62 or 63 in 2025, the SECURE Act 2.0 allows a higher catch-up contribution limit of $11,250, resulting in a total allowable contribution of $34,750 in 2025. When and why did 401(k)s become popular? Before 1978, retirement savings options were limited. In 1935, Congress created the Social Security Retirement Plan. This was followed by the Employee Retirement Income Security Act of 1974, which created individual retirement accounts, or IRAs, as a way for employees to save tax-deferred money for their retirement. 401(k) plans became popular with the passage of the Revenue Act of 1978 by Congress. Congress saw 401(k) plans at that time as an alternative way to supplement Social Security benefits that all eligible Americans are entitled to receive upon retirement. In 1981, the IRS issued new rules and regulations allowing employees to fund their 401(k)s through payroll deductions. This significantly increased the number of employees contributing to their employers 401(k) plans. As of September 2024, Americans held $8.9 trillion in 401(k) plans, according to the Investment Company Institute. A study published by the Pension Rights Center toward the end of 2023 using data provided by the Bureau of Labor Statistics concluded that 56% of all workers including private sector and state and local government workers participate in a workplace retirement plan. That equates to 145 million full- and part-time workers. How are 401(k) plans affected by market rises and falls? Contributions to a 401(k) are typically invested in a variety of financial instruments, including in the stock market. Most 401(k) plans offer investment options with varying levels of risk, allowing employees to choose based on their personal comfort levels and financial goals. Employers typically outsource the management of these 401(k) plans to third parties. Some of the largest companies managing 401(k) funds on behalf of employers and employees include Fidelity Investments, T. Rowe Price and Charles Schwab, to name just a few. Because many of these investments are tied to the stock market, 401(k) balances can rise or fall with market fluctuations. Should I be worried about the stock market tanking my 401(k)? It depends on when you started making contributions, when you plan to retire and when you expect to start making withdrawals. Employees with 401(k) accounts should only be worried about falling stocks if they need the money right now either for retirement living expenses or for other emergency reasons. If you dont need to take money out soon, theres usually no reason to panic. History has shown that markets can rebound quickly; short-term drops often dont signal long-term trends. Over time, the stock market has experienced many periods of falling stock prices: the bursting of the internet bubble of 2000; the period after the events of 9/11; and the U.S. and global banking crisis of 2007-2010, to name but three. But overall, over time, stock market returns have averaged 9% from 1994 to 2024, and this includes the periods of falling stock prices mentioned above. So even if you are a baby boomer heading for retirement and your 401(k) has taken a hit in recent weeks, dont panic. Bear in mind the truism that stock markets can always go down as well as up. History suggests that in the long run, depending upon your plans and timing for retirement, working together with a trusted financial adviser strategically with regard to your 401(k) retirement savings is a good approach, especially during periods like we have seen in recent weeks in the stock market. This article is for informational purposes and does not constitute financial advice. Consult with a qualified financial adviser before making financial decisions. Ronald Premuroso is an accounting instructor at the Western Governors University School of Business. This article is republished from The Conversation under a Creative Commons license. Read the original article.
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E-Commerce
The postal service for Hong Kong will cease handling packages containing goods to be delivered to the U.S. The announcement came Wednesday via a press release from the Government of the Hong Kong Special Administrative Region. Per the announcement, Hong Kong’s Postal Service, the Hongkong Post, will stop receiving small packages carrying goods by land and sea to be delivered to the U.S., effective immediately. Mail that contains only documents won’t be impacted, it said. Starting April 27, it will stop accepting packages delivered by aircraft, as well.“Hongkong Post will definitely not collect any so-called tariffs on behalf of the U.S. and will suspend the acceptance of postal items containing goods destined to the U.S.,” the statement explained. The statement noted that the change is a retaliatory move over the Trump administration’s recent announcement that it would end a customs exception, “the duty-free de minimis treatment.” The exception allowed the U.S. to accept small-value parcels from Hong Kong, tax-free. The Trump administration also said it would increase the tariffs for postal items containing goods to the U.S. Hong Kong’s statement also referred to the Trump administration’s actions as “unreasonable, bullying” and said it was “imposing tariffs abusively.”The retaliatory response comes amid high tensions between China and the U.S. surrounding Trump’s introduction of imposing tariffs on Chinese imports, which Hong Kong appears caught in the middle of. Last week, Trump increased tariffs on Chinese goods, bringing the total to 145%. While Beijing hit back, imposing a 125% tariff on American imports, Hong Kong did not. Still, the massive tariff’s will impact Hong Kong, as a special administration region of China. Trump has frequently changed his mind on which countries and industries will be subject to tariffs. On Monday, Trump suggested that he may pause tariffs on the auto industry. Im looking at something to help some of the car companies with it, Trump told reporters in the Oval Office. And they need a little bit of time because theyre going to make them here, but they need a little bit of time. So Im talking about things like that.” After Trump increased import taxes on China to 145%, he announced he would exempt electronics from some of those tariffs. I dont change my mind, but Im flexible, Trump said Monday.
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E-Commerce
Imagine nearly every seat in Philadelphias Wells Fargo Center over 20,000 seats are empty. Thats the scale of Pennsylvanias projected shortfall of registered nurses by 2026, according to the Hospital and Healthsystem Association of Pennsylvania. Hospitals in the state report an average 14% vacancy rate for registered nurses. In rural areas it is much higher. This shortage, of course, is not just in hospitals. It also affects long-term care facilities, outpatient clinics and home health agencies, which compete with hospitals for a limited pool of registered nurses, licensed nursing professionals and nursing support staff. We are a senior associate dean of nursing and clinical professor of nursing at Drexel Universitys College of Nursing and Health Professions in Philadelphia, and a dean and professor of nursing at Duquesne Universitys School of Nursing in Pittsburgh. We know that the nursing shortage in Pennsylvania, while not the worst in the U.S., is severe and jeopardizes the health care that patients receive. What caused the shortage? Pennsylvanias nursing shortage is the result of long-standing issues in education, workforce retention and health care delivery. Education bottlenecks: Nursing schools in Pennsylvania and nationwide turn away thousands of qualified applicants each year due to faculty shortages, limited classroom space and scarce clinical placements. More than 65,000 qualified applications were turned away from U.S. nursing programs in 2023 alone, according to a report from the American Association of Colleges of Nursing. A key issue is the lack of preceptors. Preceptors are experienced nurses who teach students in real-world settings. A shortage of preceptors directly limits how many students can complete their education. Aging workforce: More than a third of Pennsylvanias registered nurses are 55 or older. This demographic reality means many are nearing retirement. Burnout and attrition: The COVID-19 pandemic worsened already high levels of stress, burnout and mental health strain for nurses. Many left the profession early due to emotional exhaustion, family and personal health concerns, unsafe staffing ratios, moral injury and lack of institutional support. Uneven distribution: While Pennsylvania may have a sufficient number of licensed nurses on paper, those nurses dont all still work in the profession. And among those that do, they are not evenly spread across roles or locations. Rural hospitals, long-term care centers, behavioral health settings and maternal-child health units are experiencing acute shortages. Cost to patients For patients and their families, the consequences of the nursing shortage are delayed care, fewer interactions with providers and less time for compassionate, personalized support. Overextended nurses face increased workloads, raising the likelihood of delayed interventions, medication errors and inadequate patient education. These factors undermine quality of care. Limited access to nursing care can increase hospital deaths, infections and readmissions, reduce early detection of health issues, and slow the response to life-threatening conditions such as stroke, sepsis and cardiac arrest. In Pennsylvania, patients may experience longer emergency room wait times, delayed discharges or transfers to nursing homes or rehabilitation centers, and service disruptions in rural and underserved areas. Effect on nurses Over 600,000 registered nurses across the U.S. plan to leave the workforce by 2027, according to a 2023 analysis by the National Council of State Boards of Nursing. Many cite stress as their reason for leaving the profession. New graduates often leave within their first two years, feeling unprepared for the emotional and operational realities of practice. In Pennsylvania, the shortage has created a feedback loop. Understaffing increases pressure on those who remain. A 2023 National Council of State Boards of Nursing survey found that 41% of nurses under age 35 reported feeling emotionally drained. Meanwhile, some experienced nurses choose to retire early or shift into nonclinical roles for better schedules, slower pace and improved quality of life. This turnover erodes institutional knowledge, increases costs for onboarding and overtime, and limits the capacity to mentor incoming staff. Whats being done To help address the problem, Pennsylvania Gov. Josh Shapiro in March 2025 proposed a US$5 million Nurse Shortage Assistance Program. If approved by the General Assembly, the program would cover tuition costs for nursing students who commit to working in Pennsylvania hospitals for three years after graduation. HB 390 is also currently under review in the Pennsylvania General Assembly. It aims to establish a $1,000 tax deduction for licensed nurses who serve as clinical preceptors. To meet the growing demand for nurses, Pennsylvania hospitals are partnering with colleges and universities to expand clinical training capacity, streamline pathways into nursing and develop innovative education models such as hybrid and accelerated programs. Hospitals statewide are also offering substantial sign-on bonuses, loan forgiveness programs, housing stipends and flexible scheduling to attract nurses. To improve nurse retention, health care organizations have introduced structured residency programs, mentorship networks and clear career advancement pathways designed to reduce burnout and enhance professional satisfaction. They are also increasingly using virtual nursing, telehealth services and AI-driven administrative tools to reduce nurses workloads, enhance patient interactions and address staffing gaps. And some Philadelphia and Pennsylvania colleges offer refresher and license reactivation programs for retired or inactive nurses who want to rejoin the workforce. Duquesne offers a nurse faculty residency to increase the number of high-quality nursing faculty. What more could be done? Continuing Title VIII Nursing Workforce Development Programs are another solution. These federal grants, reauthorized under the March 2020 CARES Act, help fund nursing pathways and the availability of high-quality nursing care for patients nationwide. On April 1, 2025, the Trump administration announced plans to restructure the U.S. Department of Health and Human Services, and the future status of these programs is not yet known. Research consistently demonstrates that care provided by nurses who have earned a bachelors degree or higher directly leads to better patient outcomes, improved safety and overall health. A commitment to shoring up the nurse pipeline in Pennsylvania is a commitment to improving the well-being of individuals and communities across the state. Kymberlee Montgomery is a senior associate dean of nursing at Drexel University. Mary Ellen Smith Glasgow is a professor of nursing at Duquesne University. This article is republished from The Conversation under a Creative Commons license. Read the original article.
Category:
E-Commerce
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