Magazine

UpFront | Published in March 2017

No Strangers to In-Plan Income Products

By PLANSPONSOR staff | March 2017
While 401(k) plan sponsors are hesitant about adding systematic withdrawals at retirement, 403(b) plans have been using them all along. According to the 2016 PLANSPONSOR Defined Contribution (DC) Survey, overall 61.1% of the 481 403(b) plans that responded offer systematic withdrawals, compared with 44.9% of 401(k) plans overall.

Does your defined contribution plan design allow for systematic withdrawals at retirement?

401(k) OnlyOVERALLMICROSMALLMIDSIZELARGEMEGA
Yes44.9%32.6%47.1%57.3%62.7%63.0%
No31.8%28.6%34.2%36.3%30.6%31.2%
Unsure/Don’t know23.3%38.9%18.7%6.5%6.6%5.8%
401(b) OnlyOVERALLMICROSMALLMIDSIZELARGEMEGA
Yes61.1%52.7%53.2%87.0%80.0%100.0%
No14.9%14.9%19.5%8.7%6.7%0%
Unsure/Don’t know24.0%32.7%27.3%4.3%13.3%0%
Source: 2016 PLANSPONSOR DC Survey

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