Retirees often face two major financial concerns:
Traditional retirement accounts (IRAs, 401(k)s) require withdrawals starting at age 73, increasing taxable income.
Many people are living longer, increasing the risk of outliving their savings.
A Qualified Longevity Annuity Contract (QLAC) is a tax-advantaged annuity that allows you to:
Delay taxable withdrawals beyond age 73 by allocating a portion of your IRA into a QLAC.
Convert your savings into predictable, scheduled payments starting at age 75-85.
Provides a steady stream of income for life.
Earnings grow tax-free until withdrawals begin.
Move up to $200,000 (2024 IRS limit)* from your IRA or 401(k) into a QLAC.
The transferred amount is excluded from your RMD calculations, reducing taxable withdrawals.
At your chosen start date (age 75-85), you begin receiving predictable, tax-deferred payments.
If you don’t plan for longevity or RMD taxes, you may face:
Without a QLAC, RMDs increase taxable income and could push you into a higher tax bracket.
If you withdraw too much too soon, you may outlive your savings.
Market investments provide no guarantee of consistent income in later years.
By choosing a QLAC, you gain:
Still have questions? Here are the answers to the most common questions we receive:
As of 2024, you can allocate up to $200,000 from your IRA or 401(k) into a QLAC, subject to IRS limits.
As of 2024, you can allocate up to $200,000 from your IRA or 401(k) into a QLAC, subject to IRS limits.
QLAC payments are taxed as ordinary income when withdrawn, just like other retirement distributions.
Many QLACs offer death benefit options that allow your heirs to receive a refund of unused funds or continued payments.
Find out how a QLAC can lower your RMD taxes and secure your future income.
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