Secure Act’s 401(k) Annuity Options: The Pros and Cons
January 14, 2020 by William H. Brynes and Robert Bloink
The Secure Act contains provisions that will impact nearly every client saving for retirement—along with many who have already begun taking withdrawals from qualified plans and IRAs.
The Secure Act provisions impacting lifetime income options in defined contribution plans have the potential to be some of the most significant. Although it is expected that most 401(k)s will not begin offering annuity lifetime income options immediately, the new rules could have a substantial impact on the way clients plan to secure their retirement income. Because more clients are likely to begin seeing an annuity option in their 401(k) in the near future, it’s important that they have a sense of how they might benefit—and what they should watch out for when making an informed choice.