By Walter Updegrave, RealDealRetirement @RealDealRetire

>>INSURANCE AGAINST LIVING TOO LONG  “Longevity” annuities got a boost today when the U.S. Treasury Department issued new rules that will allow people to buy them within a 401(k) or IRA. Unlike an immediate annuity, which starts making payments soon after you purchase it, a longevity annuity may not begin making payouts for 10, 15 or even 20 or more years down the road. The advantage: by waiting to collect you can collect large future payments with a much smaller upfront sum than with an immediate annuity. Previously, longevity annuities weren’t widely available for  401(k)s or IRAs, as federal rules require account holders to make minimum withdrawals starting at age 70½. The new regs allow you to buy a longevity annuity within a 401(k) or IRA without violating minimum distribution requirements, as long as you begin receiving payments by age 85 and invest no more than $125,000 or 25% of your account value, whichever is less. That limit that will rise with inflation.

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