Lawrence Frolik Argues For a Right to Convert a 401(k) Plan to an Annuity

Professor Lawrence Frolik’s article, “Needed: The Right of a Retiree to Convert a 401(k) Account into a Federally Guaranteed Annuity” was published in 17 Journal of Pension Benefits 7 (Summer 2010). In the article, Professor Frolik argues that retirees are generally not capable of successfully managing a lump-sum distribution from a 401(k) plan over the 30 or more years of retirement. Instead, they need to be able to purchase a federally guaranteed lifetime annuity.