Posted by: Michael Hermes, Tax Senior
The Treasury and the IRS have issued final rules on longevity income annuities (also known as a “deferred income annuity” or “longevity insurance”).
A longevity income annuity is a contract between an individual and an insurance company. The insured deposits a sum of money with the insurance company in exchange for a stream of payments to begin at a designated future date that will last for the remainder of the individual’s life.
The IRS, in conjunction with the Department of Labor, has been working to update regulations related to retirement income since 2010, when they issued a request for information on how 401(k) accounts could provide better lifetime income. The Treasury proposed the longevity income annuity rules back in February 2012 that have now been finalized.
Learn more about new regulations for longevity income annuities here.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.
