The American Council of Life Insurers issued a press release through Insurance News Net regarding the government’s plan to make annuities more accessible for retirees. The ACLI approves of H.R. 4050, The Retirement Plan Simplification and Enhancement Act of 2012, and Massachusetts Rep. Richard Neal for introducing the act. This bill is meant to get employers to offer more annuities in their retirement plans so that Americans will have guaranteed lifetime income from their savings.
The Treasury Department made it easier earlier in February for employees to purchase a deferred 401k annuity with some of their employer-sponsored retirement plan. They promote a deeply deferred annuity, which is one that will be deferred until 10 to 20 years after the start of retirement. The Retirement Plan Simplification and Enhancement Act makes it easier for insurers to offer lifetime income options with employers through the Employee Retirement Income Security Act.
401k plans are a great way for employees to build retirement savings, but without annuities they don’t always offer the best options for receiving your income. Annuities are the only way to ensure guaranteed lifetime retirement income payments from your 401k plan. The ACLI is a strong supporter of the government’s plans to make it easier for employers to offer annuities in 401k plans.
Written by Rachel Summit
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