QLAC
Qualified Longevity Annuity Contract
Lifetime income using your Traditional IRA-type money with legal tax savings on your RMDs.
Use your IRA type assets for a QLAC lifetime income guarantee
QLACs were developed & introduced by the IRS & Treasury Dept. for lifetime income guarantees using IRA-type $$
Use your IRA & Retirement plan assets for single life or joint lifetime income guarantees.
Start income ASAP or as late as age 85.
Use the QLAC $$ amount to reduce taxes on your Required Minimum Distributions (RMDs).
Structure your QLAC so that 100% of any unused money goes to your listed beneficiaries.
Get on track with your own QLAC
QLACs offer unique benefits along with a lifetime income stream using your Traditional IRA assets
- No annual fees. No moving parts. No market attachments
- Income can be structured as single life or joint life with your spouse
- Policy can be structured so that 100% of any unused $$ goes to your listed beneficiaries
- Income can start ASAP or as late as age 85
- $$ amount in your QLAC is not used to determine your Required Minimum Distributions (RMDs)
- Lifetime income guarantees are primarily priced on your life expectancy(s) at the time the payments start
- Income continues uninterrupted & unchanged for joint life structure
- Choose from the top A+ or better QLAC carriers
- Cost of Living Adjustment (COLA) increase can be attached for increasing income
- QLACs have no liquidity during the deferral time period
- QLACs have no trackable interest rate growth during the deferral time period
QLAC Information that you can easily understand
The QLAC Owner's Manual is your go to guide for all things QLAC. This was the first book ever written on QLACs.
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QLAC Questions & Answers you need to know
QLACs were introduced in 2014 by our friends at the IRS and the Department of the Treasury to encourage IRA holders to buy lifetime income to combine with their Social Security annuity payments.
$210,000 per Traditional IRA holder. So, if you and your wife each have a Traditional IRA…you both can have a $210,000 QLAC.
Yes. You can add your spouse to your QLAC using Traditional IRA assets to provide joint lifetime income.
Only if you structure the policy LIFE ONLY. Most SPIAs are issued with Cash Refund, Installment Refund, or Period Certain so that the listed beneficiaries receive 100% of any unused money.
Yes. The annuity company does NOT give that COLA (Cost of Living Adjustment) increase away.
Cash Refund means that whatever money is unused when you die goes lump sum to the listed beneficiaries. Installment Refund means that whatever money is unused when you die goes to your listed beneficiaries at the same payment level until the money is exhausted. Most QLACs only offer Cash Refund as a backstop.
No. There is no liquidity at all with a QLAC.
No. There is no trackable interest rate growth while you are waiting to turn on the QLAC income stream.
The $210,000 (or whatever $$ amount you put into a QLAC) is not used to calculate your RMDs.
A+ or better carriers can easily back up the lifetime income guarantees of a QLAC.
Yes. As long as you are breathing or on a respirator, your QLAC will pay the contractual lifetime income stream.
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