The IRS on Friday issued final rules that allow defined benefit plan participants the option of taking both an annuity and a lump-sum payment. The move is part of a broader effort to improve lifetime income options.
Cathy Weatherford, president and CEO of the Insured Retirement Institute, said in a statement that the new rules will give participants more flexibility. “It removes the all-or-nothing choice that these workers must make when given the option, and in doing so, it will hopefully encourage more Americans to take their benefit, at least in part, in the form of a lifetime income stream,” she said.
The rule is available here.
