Does Your 401(k) Need an Annuity?

To be sure, you’ll want to need to research any insurance company before signing on the dotted line. However, many insurers have been fulfilling their contractual obligations for more than a century, says Strakosch.

Another limitation: Most current 401(k) plans offer a variety of investments, and allow participants to move from one fund to another, Glickstein says. Annuities don't offer the same variety, but presumably, as these hybrid 401(k) plans become more common, a greater number of annuity offerings will be available, as well.

One more concern is the fact that regulations governing these new plans still are evolving, Glickstein adds. Adoption of these plans probably will be limited by the speed at which regulators can move.

At this point, the market for the plans still is emerging; Strakosch estimates that six or so are available now. All are being offered through employer groups, so an individual would be unable to purchase one on his or her own.

Of course, before purchasing any retirement savings product, research is key.

“These are important decisions. Don’t make them lightly,” Vernon notes.