Annuity vs. 401(k): What’s the Difference? | Northwestern Mutual

Both an annuity and a 401(k) can be a part of your retirement plan, but there are important differences between the two. Learn more about an annuity vs. a 401(k).

Should Your 401(k) Be in an Annuity?

2 Key Takeaways People who feel uncomfortable with devising their own retirement income strategy might benefit from using a portion of their 401(k) to buy an annuity. Few 401(k) plans offer...

401(k) Annuities Still A Hard Sell Despite SECURE Act, Advisors Say

July 1, 2024 • Ben Mattlin ; In 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act made it easier for defined-contribution retirement plans such as 401(k)s to offer annuities. Nearly five years later, though, the results are mixed, according to advisors. “We are still not seeing much adoption,” said Wei Hu at Edelman Financial Engines in Santa Clara, Calif. “While the promise of a guaranteed income stream is appealing, purchasing an annuity is often seen as a co...

Annuity vs. 401(k): Which Is Better for Retirement?

As you approach your retirement, you may want to consider whether a 401(k) or annuity is right for you. In this guide, we discuss...

More people may soon have annuities in their 401(k) plans

A new retirement law, the Secure Act, loosens rules around how employers can select annuity providers for their 401(k) plans.

403(b) vs. 401(k) Plans: What's the Difference?

Both are tax-advantaged retirement plans, but the 403(b) is for government and non-profit employees while the 401(k) is for employees in the private sector.

Buying Annuities in Your 401(k)

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Annuities Are Likely Coming to Your 401(k). Should You Use Them?

Higher fiduciary liability is one reason employers have been hesitant to offer annuities as a 401(k)-plan option, says WSJ Retirement and Wealth Management Expert David Blanchett.

If annuities come to your 401(k) savings plan, here's what to know

from 401(k) plans and traditional individual retirement accounts. Otherwise, the annuity payments made to you are taxed as regular income (including the interest earned), assuming you...

Why a Retirement Annuity is Better Than a 401(K) - Due

While annuities and 401(k) plan have similarities, an annuity may be a better option for you to utilize in retirement.