Champions of longevity annuities enjoyed a major victory this summer when the Department of Treasury issued guidance allowing their inclusion in 401(k) plans.
The question, however, of how readily qualified longevity annuity contracts will be adopted remains uncertain, according to partners with the Chicago-based law firm Thompson Coburn.
"The goal to help individuals maintain an income stream throughout the golden years is laudable," write firm partners Mark Weisberg and Linda Lemel Hoseman. But the final guidance issued by Treasury contain "numerous requirements and possible traps" that may slow sponsors' adoption and participants' understanding of the products.
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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.
