In an effort to help prevent retirees from outliving their retirement savings, the IRS and the Treasury Department finalized new rules that allow participants in defined contribution plans to invest in longevity annuities that do not violate the complex minimum required distribution (MRD) requirements, which otherwise mandate that participants start taking plan distributions upon reaching age 70.
These complex new rules, which were first introduced in 2012, are set forth in Treasury Regulations Section 1.401(a)(9)-6, and are briefly summarized in the attached article.
