I’m 50 years old and my 401(k) plan is suggesting I buy annuities. Is this the right move?

Core Insights - The article discusses the introduction of annuity options in 401(k) plans, highlighting their potential benefits for retirement planning [1][2]. Group 1: Annuity Overview - Annuities are insurance products designed to help individuals meet long-term savings goals, involving a lump-sum or series of payments in exchange for future payouts [3]. - The SECURE Act of 2019 facilitated the inclusion of annuities in 401(k) plans, aiming to provide more guaranteed income options for retirees [2]. Group 2: Types of Annuities - There are three main types of annuities: fixed, variable, and indexed [5]. - Fixed annuities offer a guaranteed interest rate and predictable payments, making them popular for their stability and peace of mind [6]. - Variable annuities provide various investment options, with returns dependent on investment performance, but typically only guarantee a return of the premium for beneficiaries [7]. Group 3: Tax Implications - Investment earnings within annuities are generally tax-deferred, with gains taxed at ordinary income rates upon withdrawal, rather than capital gains rates [4]. Group 4: Payment Structures - Deferred annuities provide payouts at a future date, while immediate annuities start payments right away [4]. - Fixed annuities can be structured for a set period, lifetime payments, or joint lifetime payments for couples, with options for beneficiary payouts after death [6].