QLACs were in a design and regulatory definition phase for a while. There are many reasons to consider a QLAC (Qualified Longevity Annuity Contract). The regulations and guidelines were finalized and released in July 2014.
QLAC 101 the basics
In a nutshell, a QLAC allows the owner to shelter part of the IRA from required distributions. When an IRA/401k owner reaches the age of 70 1/2 they must start taking distributions. If they don’t need the money they may want to put that money into a QLAC.
If they want to ensure they never run out of money, this *might* fit. It is likely that another annuity will be a much better fit. Then the question becomes, which annuity is best. Well, that depends on several factors. W use something sophisticated, it is called math & logic, to analyze what is the best fit for each client. Call and ask to speak with one of our annuity analysts. We don’t share nor sell your information – you will only ever have one person to speak with from our company.
If you would like for us to help you determine what is the best fit for you, call us. We can assist you for free or maybe a small fee, if you prefer.