When it comes to plan design, I believe in the idea of KISS: keep it simple, stupid.

While the SECURE Act protects plan sponsors from liability by offering annuities, I have zero interest in adding an annuity option to a 401(k) plan. I like lump sum and partial withdrawals as payment options, everything else takes too much work and plan sponsors have too much work.

The only folks who will push annuities in 401(k) plans are the folks who stand to make money off of it. I understand that plan participants have issues on whether retirement savings will last and that’s why they might purchase an annuity, but that’s a choice they can make when retiring and receiving a lump sum payment.