A handfull of federal agencies have posted a request in the Federal Register.
The agencies are requesting information and advice on the use of annuities and other lifetime income products in employer sponsored retirement plans such as 401ks. Comments are due May 3.
The interest stems from the prevalence of defined contribution retirement plans such as 401ks and the fact that most participants in these retirement plans distribute their savings in the form of a lump sum rather than a stream of income.
The primary objective of the agencies is to provide a foundation for the retirement security of American workers. The concern seems to be that lump sum distributions are not necessarily the optimal way to distribute retirement assets.
The initiative could lead to an expansion of the use of annuities for retirement savings.
Source: Federal Register
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