Treasury, IRS OK Annuities in 401(k) Target Date Funds

The Department of Treasury released guidance for retirement plan sponsors on how they can expand the use of deferred-income annuities, providing a special rule that allows defined-contribution plans to offer target date funds that include annuities among their assets.

Treasury will permit deferred annuities to be offered at prices that vary with a participant's age. That means discrimination rules would no longer apply if the plan includes both people who are younger than the age limit for the annuity and those who qualify for the annuity.


Treasury, IRS OK annuities in 401(k) target date funds
 

Latest posts

Back
Top