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401K Follies: A Proposal to Reinvigorate the United States Annuity Market

Paul M. Secunda

Marquette University - Law School

August 12, 2010

ABA Tax Section NewsQuarterly, Forthcoming

Even given potential issues with requiring an annuity option for 401K plans, the time has come to hedge as a society against the risk associated with the recent embrace of the 401K as the private retirement funding vehicle of choice in the United States. The proposal described herein seeks to diminish the retirement security deficit through three interlocking regulatory parts: (1) a requirement to offer an annuity as part of 401K distribution options; (2) mandatory education pre-distribution on annuities; and (3) mandatory fee disclosure by annuity providers. These steps will likely reinvigorate the annuities market in the United States and help to bring an end to the 401K Follies.

Number of Pages in PDF File: 4

Keywords: 401K, annuities, lump sum distribution, pre-retirement leakage, pensions, employees

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Date posted: August 9, 2010 ; Last revised: August 14, 2010

Suggested Citation

Secunda, Paul M., 401K Follies: A Proposal to Reinvigorate the United States Annuity Market (August 12, 2010). ABA Tax Section NewsQuarterly, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1656093

Contact Information

Paul M. Secunda (Contact Author)
Marquette University - Law School ( email )
Eckstein Hall
P.O. Box 1881
Milwaukee, WI 53201
United States
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