MetLife has rolled out its first qualified longevity annuity contract product for 401(k) plans

The announcement comes a year after the Treasury Department issued guidance paving the way for QLACs in 401(k) plans and IRAs. Under the new rules, participants in 401(k) plans can move 25 percent of account assets, or a maximum of $125,000, into a longevity contract the distributes savings typically around age 85.

Designed as a hedge against longevity risk in retirement, 401(k) assets invested in QLACs are not subject to required minimum distributions governing defined contribution savings at age 70 ½.

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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.