On Oct. 24, the Treasury Department and the IRS issued new guidance designed to expand the use of income annuities in target date funds in 401(k) and other DC plans.
Guidance Highlights
Under the guidance in IRS Notice 2014-66, a TDF may include annuities allowing payments, beginning either immediately after retirement or at a later time, as part of its fixed income investments, even if the TDF is limited to employees older than a specified age.
Read about the guidance highlights, DOL thoughts and plan sponsor perspective in “Expanding Use of Annuities in 401(k) Target Date Funds” here.
Jon Vogler is Senior Analyst, Retirement Research, Invesco Consulting.
Invesco Distributors, Inc. 11/14
