BofA Launches ‘401k Pay’ Digital Solution for Retirement Income
Bank of America announced today the launch of “401k Pay,” a new solution designed to simplify and conveniently convert 401(k) account assets into a retirement income stream.
Available as of next Monday (Nov. 17) at no incremental charge to the company’s corporate plan sponsor or plan participant clients, BofA said in a press release the new digital solution provides 401(k) recordkeeping, flexible deposit options and advice in a single centralized hub. This enables plan participants to easily set, deposit and track their income throughout retirement.
“401k Pay was developed hand-in-hand with our corporate clients who wanted to offer their employees a retirement income solution,” said Lorna Sabbia, Head of Workplace Benefits at Bank of America. “Including retirement income resources like 401k Pay as part of their workplace benefits offerings provides employers with the opportunity to improve financial outcomes for their employees and can help drive real business results – including helping to improve productivity, employee job satisfaction and retention.”
Available to Bank of America clients enrolled in the company’s employer-sponsored Personal Retirement Strategy program, 401k Pay fully integrates the necessary components of retirement income management, including:
- Consistent Income Generation: Helps participants determine the retirement income they generate from their 401(k) account by bringing their full financial life into context—including personalized inputs, cost-of-living adjustments, state and federal taxes, and required minimum distributions.
- Flexible Deposit Options: Offers flexibility in the frequency of payments and choice of deposit accounts, including accounts within or outside of Bank of America.
- Real-time Recalibration: Provides ongoing income monitoring and tracking, as well as real-time recalibration results for the duration of a participant’s retirement, allowing them to adjust their income as their needs and goals change.
BofA said 401k Pay is the next evolution in retirement planning, building upon the success of the company’s Personal Retirement Strategy program. The recent 2025 Bank of America Workplace Benefits Report shows two key areas where employees say they need financial wellness resources are retirement education and planning (36%) and learning how to generate income in retirement (33%).
“Retirement readiness and the ability to plan for income in retirement are top concerns among plan participants,” said Tom Matarazzo, Managing Director, Institutional Retirement Advisory Programs & Financial Wellness Solutions. “401k Pay is designed to help directly address participant concerns—from planning how much 401(k) income is needed in retirement to drawing on those funds appropriately—with a digital solution that is a leader in the marketplace.”
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
