The Treasury Department amended the required minimum distribution rules under section 401(a)(9) of the Internal Revenue Code to provide that longevity annuities purchased with IRA assets no longer need to begin payments by age 70-1/2 as long as the annuity contract meets the definition of a “qualifying longevity annuity contract” (QLAC.) Instead the value of these annuities is excluded from the account balance used to calculate an individual’s RMD and distributions may be delayed until the individual reaches age 85.
This amendment is effective immediately.
See Longevitiy Annuities in The Gold Book for details.