A New Opening For Annuities

November 18, 2014 by Miji Pearse | Leave a Comment

A New Opening For Annuities

Straight from the IRS:: Under the new IRS guidance, a target date fund may include annuities allowing payments, beginning either immediately after retirement or at a later time, as part of its fixed income investments, even if the funds containing the annuities are limited to employees over a specified age.  The guidance makes clear that plans have the option to offer target date funds that include such annuity contracts either as a default or as a regular investment alternative.

 

The new policy change is another step reflecting the continuing commitment of the Administration to work in a variety of ways to further bolster retirement security and saving.

 

Torrid Tech Explains:  This means that the employer plans have the flexibility to offer the annuity as an option or as a default when employees save into their 401(k) plan.

 

http://blog.insurancenewsnet.com/2014/10/24/new-opening-annuities/#.VFk-2RY_lEs

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