The House passed a bill that would allow more annuities in 401(k) plans — is that actually a good thing?
May 29, 2019 by Alessandra Malito
The SECURE Act is one step closer to becoming law, and with it, Americans would see a few tweaks to the way the retirement system works.
As part of the SECURE Act, which the House of Representatives passed last week, individual retirement accounts’ age cap would be lifted, small businesses would have more avenues to offer retirement plans to their employees and part-time workers would get access to 401(k) accounts. The legislation would also boost the use of annuities in retirement accounts — something that may tilt a few heads considering the bad reputation annuities typically get for being an upfront expense with an uncertain payout (such as, if the owner of an annuity dies before reaping the benefits, or being tied to a seven- to 10-year contract).