The IRS issued final regulations regarding longevity annuity contracts. The final rules modified minimum distribution rules to permit the purchase of longevity annuities. Older retirement ages and longer life expectancies have lead to the real risk of running out of retirement funds. The new final regulations allow longevity annuities which are designed to guarantee an income stream over the lifetime of an individual. The regulations will also provide the guidance necessary for taxpayers to comply with the required minimum distribution rules. The regulations are effective July 2, 2014.
See TD 9673 (July 2, 2014).
Posted by David Song, Associate Editor, Wealth Strategies Journal