Annuities could soon qualify as a default investment in 401(k) plans

Annuities could soon qualify as a default investment in 401(k) plans

Anchiy | E+ | Getty Images

Lawmakers are considering a proposal to let 401(k) plans include annuities as a “default” investment option.

Under a bill in the House, as much as 50% of a participant’s contribution could be put in an annuity, under certain circumstances. The idea, said supporters of the provision, is to help workers reach retirement with a source of guaranteed income derived from their savings.“What we’re advocating is introducing the idea of lifetime income to be at least part of a [default investment option] — not the entire amount, but a portion,” said Dan Zielinski, spokesperson for the […]

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.