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Are There Age Limits for Longevity Annuities?

Q. Is a longevity annuity an option at any age?

A. There is no age restriction under the final regulation, though the actual annuity contract could restrict the age at time of purchase. Realistically, though, one would need to have a significant accumulation in their retirement plan account balance in order to purchase an annuity benefit of any significance (especially with the restriction that no more than 25% of a participant's account balance may be used to purchase the benefit). Thus, employees who are younger generally would not purchase the benefit.