In-Plan annuities. An alternative to company pensions. An alternative to externally purchased annuities. Perhaps the best of both worlds?
So what is preventing wider adoption? This article on PlanSponsor refers to a webcast on this topic sponsored by NAGDCA.
The pros and cons listed in the last few slides of the presentation are informative, educational, and provide guideposts as considerations to implement this feature.
As an employee, if such a feature were implemented in your company’s 401(k) plan, would you opt to utilize it? Why or why not?
As a plan sponsor, would you implement this feature? Why or why not?
Something to think about, do the homework on, and be prepared for, if and when an opportunity presents itself to consider implementing this feature, and whether or not to adopt it, if and when implemented.