Do Annuities And 401(k) Plans Mix?
By Ben Mattlin
Once upon a time, retirees received pensions through defined benefit plans. Nowadays, instead, most employees have defined contribution plans—largely in the form of 401(k)s.
Lately, a growing number of 401(k) plans are offering annuities as an investment choice. Congress has even made overtures toward helping this trend along. Nevertheless, despite compelling arguments in favor of including annuities in these plans, some industry veterans are sounding the alarm. Wrapping an annuity inside a 401(k) could actually prove harmful, they warn…