The federal government wants to give retirement plan participants more incentive to invest in annuities. In a new package of proposed regulations and rulings, the IRS and Treasury Department are reducing the administrative burdens for partial annuities by simplifying the benefit calculation. (Reg.-110980-10)
A partial annuity can provide a lump-sum payout with a stream of income over a term of years.
In addition, the required minimum distribution (RMD) rules will be relaxed so retirees can use part of their IRA or 401(k) balances to buy “longevity annuities.”
These 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.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/30587/uncle-sam-encourages-annuity-options "
- Florida ranks 6th on business tax index
- Estate planning: Stay the course, and keep gift-giving on track
- Ready, aim, hire! Target unemployeds for payroll tax breaks
- Lessons from the 2006 SHRM conference: Invest more time and money in succession planning
- Grab big write-off this year for donating whole-life policy