The SECURE Act brings safe harbor for Plan fiduciaries to include annuities as an invest and pay out option under a DC plan for the first time. This is a much needed option for those workers seeking a degree of certainty and guarantee in retirement income. Through the enforcement of ERISA, the options would be low cost for the first time. Don’t hold your breath though. It will probably take 9-months to get the final regulation issued and a period of time for insurance companies to create a “prudent” option and many more months for recordkeepers to work with carriers to make the options available, let alone trying the solve the “portability” challenge among recordkeepers and custodians (include IRAs). But what a great start!
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