What is a
Qualified Longevity Annuity (QLAC)
A Qualified Longevity Annuity or QLAC is a type of deferred income annuity purchased with funds from a qualified retirement account such as a traditional IRA or 401k.
A QLAC is like a DIA because it gives you a guaranteed income stream in the future, but it differs from a DIA because it allows you to delay required minimum distributions (RMDs).
The IRS currently allows you to use $210,000 of your qualified retirement funds to purchase a QLAC. You shouldn’t consider purchasing a QLAC until you are approaching the age of 73 when the IRS requires you to start taking distributions.
A QLAC may be a good option for you if you:
do not need your RMD withdrawals for income
If you are concerned about outliving your money
If you have strong longevity genes in your family and you expect to live a long life.
If you have sufficient qualified assets to set aside funds for future income that could be used for supplemental nursing care.
My Annuity Agents can run a QLAC quote to see if it is something you should add to your financial portfolio.