Bank of America Launches ‘401k Pay’ to Simplify Retirement Income Management

Bank of America is launching ‘401k Pay’, a new digital solution designed to simplify how individuals convert their 401(k) account assets into a steady retirement income. The solution, which launches on 17 November, will be available at no incremental charge to the company’s corporate plan sponsors or their plan participants.

The new feature provides 401(k) recordkeeping, flexible deposit options, and financial guidance in a single centralised hub. This allows plan participants to easily set, deposit, and track their income throughout their retirement.

Addressing a key employee concern

The launch of 401k Pay directly addresses a top concern identified in Bank of America’s 2025 Workplace Benefits Report. According to the report, employees cited retirement education (36 per cent) and learning how to generate an income stream in retirement (33 per cent) as two of the key areas where they need financial wellness resources from their employers.

“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.”

An integrated digital solution

The 401k Pay solution will be available to Bank of America clients who are enrolled in the company’s employer-sponsored ‘Personal Retirement Strategy’ program. It is designed to integrate all the necessary components of managing retirement income into one platform.

Key features of the new solution include:

• Consistent Income Generation: The tool helps participants determine the retirement income they can generate from their 401(k) account by considering their full financial picture. This includes personalised inputs, cost-of-living adjustments, state and federal taxes, and required minimum distributions (RMDs).
• Flexible Deposit Options: Participants have flexibility in the frequency of their payments and can choose to have their income deposited into accounts either within or outside of Bank of America.
• Real-time Recalibration: The hub provides ongoing income monitoring and tracking, allowing for real-time adjustments. This enables participants to recalibrate their income as their personal needs and financial goals change throughout retirement.

“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 at Bank of America. “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.”