I’m no planner but this seems opposite of what makes sense.

I presume that there will be big fees involved

At least corporate contracts can keep the management fees in check.

If we're to be at the mercy of our individual money managers and their corporate suckers^H^H^H^H^H^H^H masters, I'm betting fees will soon be closer to 5% than 1.5%, with no commensurate tax breaks.

A guarantee of lifelong value loss as opposed to a reasonable chance of a lifelong gain as per currently.

Annuitizing while still working? 401k should be a financial vehicle to grow over the long haul while working, not generate (presumably unrealized) income before retirement. Seems like this is in the same bad category as taking out a loan from your 401k, which can significantly harm long term growth.

And "locking in" an annuity prior to retirement? Unless this "secure income" is annually adjusted for inflation, the value of the annuity will be steadily eroded before you've even retired, much less be able to meaningfully support a 30-year retirement. The insurance industry stopped offering inflation-adjusted annuities around 2018 because the industry decided they couldn't (or weren't willing to) afford them, so I doubt that's what's being considered now.

Besides, folks with healthy 401ks and the like are already far better positioned to financially support retirement. And that's not even accounting for the costs and fees and fine print that will be involved, like mentioned above. There are times and circumstances when annuitizing can be worthwhile, and folks can already partially annuitize tax deferred accounts. Is there really a compelling need case here?

This doesn't make any sense to me. Seems like a gift to the insurance industry.

but I have been running around today swapping out seasonal decor and doing errands and whatnot.

I just added it to the OP comments.

Here is the press release link that explains what they are talking about - Panetta, LaHood Reintroduce Bipartisan Legislation to Simplify Retirement Savings Options for Seniors

someone's getting fucked and it wont be anybody wealthy.

You really have to research them to know what you are getting. They also don't offer much of a hedge on inflation except for letting you buy down the first year or two then increasing it a little every year after that. Also, any extra money your annuity makes while in the annuity pool is pocketed by the insurance carrier along with a bunch of possible fees.

That would really help. They could cap it at a certain amount each year. Of course, they won't do that.

any money left in your 401K (ie pretax money) investment should not be taxed upon withdrawing.