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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