The IRS has published a final regulation that allows defined contribution plans to offer longevity annuities commencing as late as age 85. Although the final regulation is similar to the rule proposed in 2012, the IRS has made some welcome improvements in response to public comments.
The final regulation is effective for annuities purchased after July 1, 2014. Employers might wish to consider whether to offer longevity annuities in their defined contribution plans, now that the IRS has explained the rules that govern these annuities.
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