What Is a Group 401k Annuity?

The group annuity 401k is a type of investment that many retirement plans are starting to offer. Here are the basics of the group 401k annuity and how they work.

Group 401k Annuity

This type of investment is one that you can purchase with the funds in your 401k plan. Many 401k providers are now regularly offering group annuities as part of the investments that are available to choose from. 

This is a type of investment that is offered through an insurance company. You are going to be paying a regular amount to the insurance company in return for an annuity contract. 

What They Offer

There are many different types of annuities that you could purchase through your group 401k plan. Many times, you will be able to purchase a fixed annuity over the course of your working life. Part of the money that you pay to the annuity company is going to be invested into mutual funds and other investments.

Whenever you reach retirement age, the insurance company is going to start sending you a regular paycheck from the annuity. Some annuities guarantee to pay you a certain amount of money every month until you die. Others will pay you a variable payment based upon the performance of your investments.

blog comments powered by Disqus