The 401k plan is evolving.
Changes in regulation have created a shift from simply savings and accumulation to savings, accumulation, and guaranteed income.
I want to share with you a new capability that transforms a traditional 401k savings plan into a pension-like plan providing the ability for participants to create guaranteed income for life based on their 401k account value.
Here are some key benefits for participants and plan sponsors.
|Key Benefits for Participants||Key Benefits for Plan Sponsors|
No surrender of account balance
Income is backed
Interested in learning more about this new type of pension-like plan for your employees?
All investments involve risk, including possible loss of principal. The target date is the approximate date when investors plan to start withdrawing their money. The principal value of a target fund is not guaranteed at any time, including at the target date.
Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.
This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.