The Treasury Department and the Internal Revenue Service issued final rules on July 1 to make longevity annuities—which provide regular payments that begin at an advanced age and continue throughout the individual’s life—accessible to the 401(k) and IRA markets.
The new rules are “effective immediately,” Mark Iwry, senior advisor to the secretary of the Treasury and deputy assistant secretary for retirement and health policy, said to applause at the Insured Retirement Institute’s Government Legal & Regulatory Conference in Washington.
“We think this helps advance lifetime income in a way that we haven’t seen before,” IRI President and CEO Cathy Weatherford said.
Iwry told IRI attendees that Treasury has amended its required minimum distribution rules so that longevity annuity payments will not need to begin prematurely in order to comply with those regulations.
“As boomers approach retirement and life expectancies increase, longevity income annuities can be an important option to help Americans plan for retirement and ensure they have a regular stream of income for as long as they live,” Iwry said.