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(reposting due to bad link)

And it would make it easier for older adults to avoid taking required distributions by investing their retirement funds in annuities.

The change is a bit more nuanced than the description. Today, if you take your IRA/401k and turn it into an immediate annuity (life, period certain, or both), you can be restricted on just how much of an annual COL adjustment you have on the income (e.g. 2.5% annual increase in income) due to the RMD rules.

This change appears to allow for more flexibility in those irrevocable income streams which brings them more inline with one might get from a pension.

This change does not allow a person to otherwise avoid RMDs - they are still taking annual income just less to start with and more (in excess of the RMD) later.

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