News | 12.18.19
What the SECURE Act means for annuities
The SECURE Act, which was approved by the House Tuesday, will impact annuities in a number of ways, writes Jamie Hopkins, director of retirement research and vice president of private client services at Carson Group. For one, a provision that changes how annuities would be treated, which can be found in Sec. 204 of the act, will help relieve fiduciaries' responsibilities in selecting and reviewing annuity providers and annuities to ease the burdens of getting annuities into 401(k) plans. Another provision would eliminate most beneficiaries' ability to stretch distributions from IRAs and defined-contribution plans over their life expectancy — excluding spouses, who can still take advantage of stretch strategies. "The bill is not the completely positive outcome for annuities that some might expect," says Hopkins. "But it does offer some commonsense changes."
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