By: Jason Cross, JD, CFP®, CTFA
The SECURE Act brought about major changes in how you plan for retirement. Two provisions, backed by insurance companies, are designed to expand the reach of annuities into retirement plans. Below, I discuss these changes and whether they will benefit you.
New “Safe Harbor” for Annuities in 401(k) Plans
Prior to the passage of the SECURE Act, only about 10% of 401(k) plans offered annuities as an investment option. Plan fiduciaries are required by federal law to act prudently when selecting investment options for participants. Before the SECURE Act, the majority of plan fiduciaries chose not to include annuities as an option for two main reasons.
First, plan fiduciaries are potentially exposed to legal liability if they offer annuities as an...
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