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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This is also a good way to boost retirement preparation of employees. I hope that people will have a full understanding about this option. Annuities has positive and negative reputation, it will just depend on a person’s needs and decision if he will get one. the important thing here is that people offered with this options should be fully knowledgeable about it so that they will be able to maximize the full potential of annuity.