IRS Guidance Facilitates Annuitization of Retirement Benefits
The Treasury Department and the Internal Revenue Service ("IRS") have released a package of guidance intended to facilitate the provision of annuities in qualified retirement plans. The package includes two sets of proposed regulations and two Revenue Rulings. The first of the proposed regulations would amend the minimum required distribution regulations to enable defined contribution plan participants to purchase so-called "longevity annuity contracts" with a portion of their accounts. The second proposed regulation would make it easier for defined benefit plans to offer bifurcated distribution options, whereby participants could elect to take their benefit partially in cash and partially in an annuity.