QUALIFYING LONGEVITY
ANNUITY CONTRACT

Want Guaranteed Lifetime Income and Save on RMD Taxes?

Compare instant QLAC Income Rates

Why QLAC Quote?

Compare and choose what is in your best interest with instant QLAC income rates direct from the annuity companies side by side. Developed by a Certified Financial Planner® and Retirement Income Certified Professional® so that QLAC process is transparent and easy. See your estimated IRA RMD (Required Minimum Distribution) tax deferral savings from the online calculator.

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What is a QLAC?

QLAC (Qualified Longevity Annuity Contract) may be the highest income, easiest kind of annuity income that you can buy. Summer of 2014, the IRS and Treasury Department finalized the creation of qualifying longevity annuity contracts, or QLACs, under the required minimum distribution (RMD) rules of Internal Revenue Code section 401(a)(9). Providing an exception to the RMD rules allowing an IRA owner to use the lesser of 25% of account owners total IRA account balance or $125,000 to deferred income annuity or longevity annuity that provides no cash value and promises income payments no later than age 85. The only retirement tool that would provide protection against the longevity “risk” and not require the IRA account owner to distribute RMD tax up until age of 85 from a QLAC.

 

Why use a QLAC?

  • Save on IRA RMD tax by allowing your IRA QLAC to defer RMD income until age 85
  • Medical expenses – as you age medical expenses become a larger portion of your monthly expenses – the income from QLAC can provide income for those expenses and help maintain your standard of living
  • Inflation – you can use the additional QLAC income into the future to help off-set inflation
  • Replace a pension or Social Security – if one spouse passes their pension/social Security may be reduced or even eliminated for the surviving spouse.  Income from QLAC could help replace some of this lost income
  • Knowing that you have additional guaranteed income into the future gives you the confidence to have a stronger allocation to stock equities – over time this could provide more robust portfolio returns
  • Tax deferral of income you don’t want or need until a future date