Podcast Center
Video Center
Webcasts
Resource Center
Events
October 24, 2014 at 11:24 AM
The Treasury Department issued new IRS guidance to support the expanded use of annuities in defined contribution plans.
The guidance makes clear that plan sponsors may offer deferred income annuities in target date investment options that are designated as the default investment in 401(k) and other defined contribution plans.
This guidance demonstrates the Treasury Department’s commitment to, and ongoing support for, making lifetime income more accessible in workplace retirement plans. The announcement, which follows on the heels of the Treasury’s qualifying longevity annuity contract rule, is the latest move to help ensure that American workers and their families can attain guaranteed retirement income that cannot be outlived.
By continuing to break down access barriers and providing plan sponsors with this clear guidance, the Treasury Department is acknowledging the important part annuities have in helping Americans attain financial security in retirement.
