The Pension Benefit Guaranty Corp. unveiled the final rules Monday for anyone who rolls over their 401(k) into an employer's defined benefit plan, announcing that those dollars would not be affected by the PBGC's guarantee limits.
Fewer employers nowadays offer a defined-benefit plan but where they do, the PBGC decision could help encourage participants looking for a guaranteed lifetime income stream.
Concerns about whether rolled-over assets would be protected by the PBGC in the event of a plan's failure have until now discouraged the practice.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
