Build a retirement tier in your DC plan
Many plans today offer flexible withdrawal options that include lump-sum, ad hoc and systematic withdrawals. This type of flexibility makes the DC plan work for retirees who may use their savings in different ways at different points in their retirement. Key to this success is ensuring the fees to take withdrawals are either zero or nominal. Furthermore, incorporating Minimum Required Distribution calculation services makes the DC plan more effective for retirees.
Recordkeeper attitudes and systems are evolving rapidly to offer flexible distribution strategies. The below tables summarize our findings from a survey of recordkeepers in the marketplace.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.