Court Says CalSavers is a Valid Program

A retirement income certified professional from San Diego, California, Brian Gibbs has been providing retirement planning services to individuals and businesses since 1979. Brian Gibbs serves the San Diego-based firm Heritage Retirement Planning Advisors, Inc. as president and CEO, where he offers his expertise in charitable trusts, tax reduction planning, and retirement planning to clients in California and other US states.

The US 9th Circuit Court of Appeals in San Francisco said that CalSavers is a valid retirement program. CalSavers was created in 2017 as California’s new retirement saving program. It allows California workers who are employed by businesses that do not offer 401(k) programs to be automatically enrolled under CalSavers. CalSavers is also accessible to the self-employed and others who wish to have an extra retirement plan, to save towards an Individual Retirement Account (IRA).

CalSavers was challenged by the Howard Jarvis Taxpayers Association which claimed that CalSavers interferes with the US Employee Retirement Income Security Act of 1974. However, the appellate court ruled that the said law does not bar Californians from saving for their retirements, especially those who are not enrolled in a 401(k) program.

Since CalSavers was launched in 2019, over 10,000 employers and 340,000 employers have registered. California implements CalSavers by phase and expects to cover 6.8 million workers.

Retirement Plans Types and Details

An experienced financial advisor with a bachelor of science in financial and estate planning, Brian Gibbs is the president and CEO of Heritage Retirement Advisors, Inc. in San Diego, California. Brian Gibbs is experienced in helping clients in the San Diego community by providing tax reduction planning and retirement solutions.

Retirement plans present people with tax advantages. One of the most common retirement plans in the United States is the defined contribution plan or DC plan. A study by Willis Towers Watson reveals that in 2019, over 80 percent of the Fortune 500 companies offered defined contribution plans to their employees. An employee contributes a certain percentage of their current earnings to their retirement pension in a defined contribution plan.

In the Roth 401(k) version of the DC plan, employees contribute to that pension with after-tax income and withdraw their money tax-free when the time comes. There is also a 403(b) plan similar to the Roth 401(k), but contributions can be made with pre-tax income, and the contributions are tax-free. Both of these plans can be withdrawn at the age of 59 and a half. Otherwise, a withdrawal can result in a penalty and additional taxes.

Benefits of Post-Retirement Life Insurance Plans

Experienced financial consultant and insurance specialist Brian Gibbs has led the San Diego advisory firm, Heritage Retirement Advisors, since 2005. Brian Gibbs works with clients in and around the San Diego area to implement strategies that will secure long-term financial security. In addition to holding a Retirement Income Certified Professional credential, he has been a licensed Life and Health Insurance Professional for nearly four decades.

The traditional purpose of life insurance is to replace income and ensure that dependents can maintain their quality of life after their loved ones pass. While many retirees no longer earn an income, they may still desire a financial safety net for their spouse or increased inheritance for their beneficiaries.

Retirees who still hold debts such as a mortgage may take out a life insurance policy to cover these expenses, especially if the costs are too expensive for their spouse to sustain independently. Retirees in more secure financial situations may take out a life insurance policy for beneficiaries to apply towards estate taxes or provide liquidity to cover other fees. In some cases, life insurance payouts can be donated directly to nonprofits.
Certain types of life insurance contracts also provide living benefits including tax- free income, critical injury, and chronic illness protection.