What the Secure Act Means for Annuities in Retirement Plans
September 28, 2021 by David Paul and Michelle Ritcher
On Dec. 20, 2019, President Trump signed the Setting Every Community Up for Retirement Enhancement (Secure) Act into law. This bipartisan legislation, which had been in the works for several years, seeks to further promote access to retirement income within the 401(k) market.
An important aspect of this act is a “safe harbor” provision for the selection and use of annuity products underwritten by insurance companies. (This provision was added to the Employee Retirement Income Security Act (ERISA) of 1974 in Section 404(e) and is called “Safe Harbor for Annuity Selection.”)