Treasury, IRS OK Deferred Income Annuities in 401(k)s

Treasury, IRS OK Deferred Income Annuities in 401(k)s

Straight from the IRS:: Many employer-sponsored 401(k) plans offer so-called target date funds as a default investment for participants who do not affirmatively elect a different investment.  Target date funds get their name from the fact that their allocation of investments shifts gradually from equities to fixed income as participants approach an intended target retirement year.

How does this apply to you?

Torrid Tech Explains: In recent years target date funds have exploded in popularity by offering workers a way to reduce risk in the market as they approach retirement.  Recent abnormal bond pricing has made it difficult to achieve this result and has left many wondering whether target date funds are accomplishing their goal.

http://www.thinkadvisor.com/2014/10/24/treasury-irs-ok-deferred-income-annuities-in-401ks

Afraid you may outlive your savings; tried giving annuity options a try? What’s been your experience with target date funds? Share your feedback. We’d love to hear from you!