Monday, February 17, 2020

The SECURE Act – So, What is a “Lifetime Income Stream Equivalent” of Your 401(k) Account Balance? How Will It be Calculated? And Why Should You Care?

In accordance with Section 105(a)(2) of the Employee Retirement Income Security Act (ERISA), as amended by the SECURE Act of 2019, defined contribution plan sponsors will soon be required to disclose two lifetime income stream equivalents (LISEs) of a participant’s current account balance under the plan at least once during each twelve-month period in participant benefit statements.  The two required LISEs are: