WASHINGTON -- Advisors helping clients plan for retirement have a new option that could help carve out a middle ground between taking a lump-sum payout from a 401(k) and throwing their entire plan into an annuity.

On Tuesday, the Treasury Department and IRS finalized rules governing so-called longevity annuities, a deferred income vehicle that begins paying out when the retiree reaches an advanced age -- say 80 or 85 -- and continues through the individual's life.

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