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

Afraid you may outlive your savings; tried giving annuity options a try? Share your feedback. We’d love to hear from you!

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.

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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!