Everyone at some level has a fear about money. Not enough of it, doing something foolish with it, etc. At the top of the list of fears is the fear of poverty or living longer than you have money for.
QLACs or Qualified Longevity Annuity Contracts help reduce that fear. The QLAC has been on the drawing board for a few years. The regulations were finalized in July of 2014. At this time there are only a couple of insurance companies who have released their QLAC products.
The short version is that an IRA owner can move a portion of their IRAs to a QLAC. That portion is 25% or $125,000 whichever is smaller. This will allow the owner to postpone realizing this income until they reach the age of 85 years old. Many people who come into my office forgot that they created an agreement to start taking money from retirement accounts at age 70 1/2.
We work with these people to address the concern or situation by reviewing this option with them.
If you are considering a QLAC – give us a call. We know in our hearts many people have questions, some people are not comfortable asking questions. We firmly believe there are no stupid questions – call us. Our toll-free number is 866-589-9366