Brief Case
Pension Resource

29 C.F.R. § 2550.404a-4

Selection of annuity providers—safe harbor for individual account plans.
eCFR amendment effective 2025-08-12 · superseded Jul 1, 2025 · last amended by 73 FR 58449, Oct. 7, 2008
PrintCompare datesAsk AI about this sectionOfficial source ↗
Back to current
Historical text in effect Jul 1, 2009 through Jun 30, 2025. View current · Compare with current
(a) Scope.
(1) This section establishes a safe harbor for satisfying the fiduciary duties under section 404(a)(1)(B) of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1104-1114, in selecting an annuity provider and contract for benefit distributions from an individual account plan. For guidance concerning the selection of an annuity provider for defined benefit plans see 29 CFR 2509.95-1.
(2) This section sets forth an optional means for satisfying the fiduciary responsibilities under section 404(a)(1)(B) of ERISA with respect to the selection of an annuity provider or contract for benefit distributions. This section does not establish minimum requirements or the exclusive means for satisfying these responsibilities.
(b) Safe harbor. The selection of an annuity provider for benefit distributions from an individual account plan satisfies the requirements of section 404(a)(1)(B) of ERISA if the fiduciary:
(1) Engages in an objective, thorough and analytical search for the purpose of identifying and selecting providers from which to purchase annuities;
(2) Appropriately considers information sufficient to assess the ability of the annuity provider to make all future payments under the annuity contract;
(3) Appropriately considers the cost (including fees and commissions) of the annuity contract in relation to the benefits and administrative services to be provided under such contract;
(4) Appropriately concludes that, at the time of the selection, the annuity provider is financially able to make all future payments under the annuity contract and the cost of the annuity contract is reasonable in relation to the benefits and services to be provided under the contract; and
(5) If necessary, consults with an appropriate expert or experts for purposes of compliance with the provisions of this paragraph (b).
(c) Time of selection. For purposes of paragraph (b) of this section, the “time of selection” may be either:
(1) The time that the annuity provider and contract are selected for distribution of benefits to a specific participant or beneficiary; or
(2) The time that the annuity provider is selected to provide annuity contracts at future dates to participants or beneficiaries, provided that the selecting fiduciary periodically reviews the continuing appropriateness of the conclusion described in paragraph (b)(4) of this section, taking into account the factors described in paragraphs (b)(2), (3) and (5) of this section. For purposes of this paragraph (c)(2), a fiduciary is not required to review the appropriateness of this conclusion with respect to any annuity contract purchased for any specific participant or beneficiary.
Source credit, amendments & notes

[73 FR 58449, Oct. 7, 2008]

29 C.F.R. § 2550.404a-4 — Selection of annuity providers—safe harbor for individual account plans. · eCFR amendment effective 2025-08-12 · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-2550.404a-4&asof=2016-01-03 · printed Oct 16, 2026
On this page
  • (a) Scope.
  • (b) Safe harbor.
  • (c) Time of selection.
Implements
ERISA § 404 (29 U.S.C. § 1104) Fiduciary duties
Cited by (code & regs)
Guidance addressing this section
Department of Labor (EBSA)
Final Rules
  • 90 FR 28007 Jul 1, 2025 — Selection of Annuity Providers-Safe Harbor for Individual Account Plans (b)(5)
IRS / Treasury
Proposed Rules
  • REG-148681-09Proposed Mar 15, 2010 — The Department of Labor and the Department of the Treasury (the “Agencies”) are currently reviewing the rules under the Employer Retirement Income Security Act…
  • 75 FR 5253Proposed Feb 2, 2010 — Request for Information Regarding Lifetime Income Options for Participants and Beneficiaries in Retirement Plans Comments due May 3, 2010
Also cited in 3 other documents
Department of Labor (EBSA)
Proposed Rules
  • 91 FR 16088Proposed Mar 31, 2026 — Fiduciary Duties in Selecting Designated Investment Alternatives Comments due Jun 1, 2026
  • 86 FR 57272Proposed Oct 14, 2021 — Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights Comments due Dec 13, 2021
Advisory Opinions
  • AO 2025-04A — The Advisory Opinion concludes that the requestor’s Lifetime Income Strategy program meets the requirements to be a qualified default investment alternative un…

No court rulings in the library cite this provision yet.

No private letter rulings in the library cite this provision yet.

Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Jul 1, 2009Jun 30, 2025eCFR amendment effective 2025-08-12 run 273 FR 58449, Oct. 7, 2008View
Jul 1, 2025Aug 11, 2025eCFR amendment effective 2025-07-01 run 2673 FR 58449, Oct. 7, 2008View · Redline (sign in)
Aug 12, 2025currenteCFR amendment effective 2025-08-12 run 2673 FR 58449, Oct. 7, 2008View · Redline (sign in)
Provision-level history (blame)