10 hours ago
When you look at your quarterly 401(k) statement, you likely focus on a number — hopefully, a big one — and little else. But that is about to change. Sponsors of defined-contribution retirement plans, such as 401(k) plans, soon will include an illustration on statements that estimates how much lifetime income participants will get from their nest egg. The estimate will be expressed in the form of how much income you could potentially get from your nest egg via an annuity each month, CNBC reports. For now, an interim rule, which would take effect Sept. 18 if the Labor Department doesn’t issue a final rule before then, mandates two illustrations at least annually. One illustration shows income from a single life annuity, and the other shows income from a joint annuity with benefits for a surviving spouse. Retirement plan participants should expect to see the new information on their 401(k) statements between fall 2021 and fall 2022, CNBC reports.
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