Description: This article provides a basic introduction to the taxation of qualified annuities held in qualified retirement plans and IRAs. The article has been updated for the SECURE Act and the SECURE 2.0 Act. The article describes the basic types of employer-based plans, provides of overview of the taxation of contributions and benefits when annuities are held in connection with plans and IRAs, explains the required minimum distribution rules, and offers a brief introduction to recent legislation impacting qualified annuities.

Description: Actuaries can be well suited to provide consulting to both DB and DC plans. We focus on DC design and the important nondiscrimination test requirements that need to be at the core of a plan design project. Plan design for DC plans seems easy, but should not be looked at any less seriously than DB plan design. The key steps are the same as DB plan design. We review key concepts that plan design actuaries want to know.

Description: Many retirement actuaries have experience developing, implementing, and monitoring Liability Driven Investing (LDI) strategies for plan sponsors. These strategies typically involve modifying a plan’s investment strategy to remove a significant portion of the investment and interest rate risk now or at some point in the future when specific triggers are met. The tactics often involve the use of fixed income assets to cash flow and/or duration match the liabilities. In the spirit of helping actuaries expand their roles in an evolving defined contribution world, this article explores the application of LDI and derisking strategies within defined contribution and individual retirement accounts. The economic theory behind this approach is called the lifecycle hypothesis, or lifecycle finance. The benefits of the lifecycle finance method are that it provides a safe approach to save for retirement and a secure source of floor income during retirement. Similar to pension plans, each individual has his or her own idiosyncratic needs, wants, and risks that should be considered. Actuaries are uniquely situated to help defined contribution plan sponsors, individuals, and even themselves implement the lifecycle finance approach by developing and distributing tools and methods that focus on income (rather than wealth), LDI strategies, and personalization.

Description: Retirement benefits, including health benefits, are increasingly being delivered through a DC structure. The presenters will explore how benefits are delivered and utilized, including consideration of tax implications and ordering. DC plan benefits in both the U.S. and Canada will be discussed.

Description: There is no silver bullet to improving retirement income outcomes for retirees. However, a combination of changes can be of significant value in addressing this overlooked issue. Although QLACs on the surface have potential value, they are not nearly as efficient as they could be. So far, employer plans have provided limited options for retirement income solutions. IRAs may not cost effectively serve the best interest of retirees. Employer plans should be encouraged to become retirement income providers and alternative approaches should be considered. The current prohibition on allowing plans to modify benefit payouts based on mortality experience should be reconsidered to allow for innovative plan income designs. Improvements to the deaccumulation stage of the retiree nest egg are challenging yet necessary.

Description: An interview with Michelle Richter-Gordon which provides a look at how DC participants feel about their financial security in retirement and suggests how retirement professionals can improve the financial security of retirees during the decumulation phase.

Description: With freezing and termination of DB plans, there is a growing void in retirees' retirement planning that can best be solved by annuities. The presenters will discuss different ways that annuities can be used to provide retirement income in DC plans. They will also cover industry trends and the challenges of associated with adding annuities within DC plans

Description: An interview with actuary Lee Gold reveals preliminary results of a recent SOA research project which surveyed employees on what retirement plan features they prefer.

Description: This article discusses the opportunity for annuity carriers created by the SECURE Act to distribute annuities through Employer Sponsored Defined Contribution Retirement Plans. The article covers a high-level overview of the changes enacted by the law that create the opportunity, as well as the potential opportunity for future annuity sales.

Description: Interview with Blaine Aiken to learn about recent developments in fiduciary responsibility and financial and retirement advice. New developments will extend the fiduciary requirements financial advisors are subject to. These developments are linked to changes in the code of ethics that apply to CFPs.