Defined terms for the annuity market and lifetime income landscape.
A brokerage window is a feature of some defined contribution plans that permits participants to invest a portion of their account outside the plan's core investment menu through a self-directed brokerage account, which provides access to a broader universe of investment options than the core menu.
A catch-up contribution is an additional elective deferral that a participant aged 50 or older can make to a defined contribution plan above the general annual contribution limit, with a further elevated limit for participants in a specified older age range under changes enacted by SECURE 2.0.
Co-fiduciary liability is the ERISA provision under which one plan fiduciary can be held personally liable for another fiduciary's breach where the co-fiduciary participated in, enabled, or failed to remedy the breach.
A default investment is the investment option into which a defined contribution plan directs participant contributions when the participant has not made an affirmative election among the plan's investment choices.
A defined contribution plan is an employer-sponsored retirement plan in which contributions are made to individual participant accounts, and each participant's retirement benefit is whatever the account produces from those contributions and investment returns.
