Lifetime Income Disclosures for 401(k)s Due Next Year, DOL Says

Most employers sponsoring 401(k)-type retirement plans must provide participants with lifetime income illustration disclosures by this time next year, according to new U.S. Labor Department guidance.

That news came to light as the DOL’s employee benefits arm answered four frequently asked questions Monday ahead of the Sept. 18 effective date of its interim final rule on annual illustrations that detail how a participant’s retirement savings will translate into monthly income.

Participant-directed retirement plan sponsors that issue quarterly balance statements will have until the second calendar quarter of 2022 ending June 30, 2022, to include at least one lifetime income illustration ...