According to an article by BusinessManagmentDaily, the federal government wants to give retirement plan participants more incentives to invest in annuities. In fact, the IRS and Treasure Department have proposed a new package of regulations and rulings that intend to offer incentives for investing in annuities. In addition to these incentive-based regulations, the required minimum distribution rules will be loosened so retirees can use part of their IRA or 401(k) balances to buy longevity annuities, which begin late in life—typically, at age 80 or 85—so premiums are cheap and the retirees don’t have to worry about outliving their savings.
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