IRS, Treasury Support Annuities Use in 401(k) Plans
Straight from the IRS: The new guidance or policy provides plan sponsors an additional option to make it easier for employees to consider using lifetime income. Instead of having to devote all of their account balance to annuities, employees use a portion of their savings to purchase guaranteed income for life while retaining other savings in other investments.
How to use this info to your benefit?
Torrid Tech Explains: This means the employee can choose to put some into annuities for lifetime income and still also have savings in other investments like mutual funds.
Afraid you may outlive your savings; tried giving annuity options a try? What’s been your experience with using part of your savings for guaranteed lifetime income while using another portion for other investments? Share your feedback. We’d love to hear from you!
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