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Rekenthaler Report

Turning 401(k) Plans into Lifetime Investments

The Department of Labor lays the groundwork.

10 Years Later
Starting next year, 401(k) participants will regularly receive information about the amount of income that their plan assets might deliver during retirement. The Department of Labor has announced an “interim final rule” that would require 401(k) administrators to show each participant’s account balance not only as a lump sum, but also as a projected monthly income stream.

This decision has been a long time coming. The DOL first floated the concept February 2010, then followed up with the details in May 2013. Seemingly forgotten, the proposal resurfaced because of the SECURE Act of 2019, which amended various retirement-plan regulations. Among the Act’s mandates was that plan sponsors provide participants with projected-income calculations. Voila! The DOL had but to dust off its 2013 submission.