Why Doesn’t my 401k Offer an Annuity Income Choice?
This is a common sense question that has kept rational people scratching their heads for a very long time. When I decided to write an article concerning this issue, the status quo still ruled and income type annuities could really not be used in qualified plans. As of the time of this article, the Department of the Treasury and the IRS have approved the use of Longevity Annuities (aka: Deferred Income Annuities – DIAs) within 401k and IRA plans. The new product is called a QLAC, which stands for Qualified Longevity Annuity Contract. In typical government fashion, they “tip toed” their way into this, and need to raise the limitations. But for now, beggars can’t be choosy, so let’s take this ruling and build on it from here.