In Mark Iwry: Bringing Annuities to 401(k)s, Ben Steverman of Businessweek asks J. Mark Iwry, senior adviser to the Secretary of the Treasury and deputy assistant secretary for retirement and health policy, a series of Q&As about the new proposed regulations on annuities in 401(k) plans. In the article, published on April 17, 2012, Mr. Iwry says that by allowing 401(k) plan to include annuities as one of the investment options available to participants, the plan will be able to help participants manage “longevity risk” – the risk that they will outlive the account balance in their retirement plan.
The proposed regulations, Longevity Annuity Contracts, were released by the IRS on Feb. 3, 2012. They permit tax-qualified defined contribution plans, including 401(k), 403(b), and govt. 457 plans, along with Code section 408 IRAs, to purchase longevity annuity contracts. The IRS requests written comments about these proposed regulations by May 3, 2012.