Qualified Longevity Annuity Contract
In 2014, our “friends” at the IRS and the Treasury Department introduced the newest product to the annuity category, the Qualified Longevity Annuity Contract (QLAC).
QLACs can only be used with IRA/Qualified income.
Specific QLAC rules apply for funding the policy.
You can use Traditional IRA $$ to fund a QLAC.
Your spouse or partner can be set up for “Joint Life” payments.
QLAC $$ is not used to calculate your Required Minimum Distributions (RMDs).
QLAC income can start as soon as age 72 (formerly age 70 ½).
QLAC income can start as late as age 85.
You can ladder QLACs to start at different ages in the future.