Delay Required Minimum Distributions with Qualified Longevity Annuity Contracts

Are you looking to postpone your Required Minimum Distributions (RMDs)? Consider exploring Qualified Longevity Annuity Contracts (QLACs) as a potential solution. QLACs offer a unique way to delay RMDs and secure a guaranteed income stream for later in life.

What exactly is a QLAC? A QLAC is a type of annuity that is purchased with funds from a retirement account, such as a 401(k) or IRA. The key advantage of a QLAC is that it allows you to defer RMDs on the portion of your retirement savings invested in the annuity until a later age, typically age 85.

By investing in a QLAC, you can ensure that you have a source of income that will kick in at an older age, providing you with additional financial security in retirement. This delayed income stream can be especially valuable for individuals who are concerned about outliving their retirement savings.

Furthermore, QLACs offer tax advantages that can help you maximize your retirement savings. The premium you pay for a QLAC is excluded from the calculation of your RMDs, which can help reduce your taxable income in retirement. This can be particularly beneficial if you are looking to minimize taxes and preserve more of your savings for the future.

Overall, QLACs can be a valuable tool for individuals who are looking to delay RMDs and secure a guaranteed income stream for later in life. If you are interested in exploring QLACs further, be sure to consult with a financial advisor who can help you determine if a QLAC is the right choice for your retirement planning needs.