News | 11.30.18
Annuity and Mutual Fund Interests at Odds over 401(k) Disclosures
A fight is breaking out over retirement legislation that Congress is trying to push through before year's end. A provision in the Retirement, Savings, and Other Tax Relief Act of 2018, introduced this week by Kevin Brady (R-TX), chairman of the House Ways and Means Committee, would require the annual 401(k) benefit statements for participants to include a translation of their current account balance into a monthly income stream. The Insured Retirement Institute and American Council of Life Insurers both called the measure a "key" part of the retirement security bill. A coalition of about a dozen plan providers and industry trade groups disagrees, outlining its discontent in a letter sent Wednesday to top lawmakers. The group asserts, among other complaints, that the government is "inadvertently providing its imprimatur to one specific product — annuities — over other investment products" in the measure's current form.
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