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Old 12-07-2009, 03:33 PM
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Fuzzy Fuzzy is offline
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Join Date: Oct 2001
Location: Far from the madding crowd...but closer than I used to be
Studying for the "final" exam
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According to PlanSponsor: "Specifically, according to a press release, under the Lifetime Income Disclosure Act, defined contribution plans subject to the Employee Retirement Income Security Act (ERISA) would be required annually to inform participants of how the account balance would translate into guaranteed monthly payments based on age at retirement and other factors. To ensure there is no material burden or potential liability on employers who voluntarily sponsor 401 (k) plans, the legislation directs the Department of Labor to issue tables that employers may use in calculating an annuity equivalent, as well as a model disclosure."

Oh goodie, another "index" for us to think about...I wonder how this will work out when someone can't find an insurer to actually issue an annuity contract for the table price, what the expense load will be, how alternative forms of distribution will be handled, what happens when someone's account runs out if they decide to take the income without actually purchasing an annuity, what this will do vs RMDs,...
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