Understanding the New Qualified Longevity Annuity Contract Regulations

It is important for retirees to know about how to use the new regulations on Qualified Longevity Annuity Contracts (QLACs).  These contracts are essentially “wrappers” that house deferred income annuities (DIAs).  This can permit individuals to delay payments to fill potential income needs that might come up later in life.  There are several income options that a person can choose from, QLACs offer clients more flexibility than what a traditional retirement plan might have given. 

In order to be successful a QLAC should take a holistic approach which factors in the client’s individual life needs.  It is good to consult with a proper tax advisor to work out a plan because a QLAC is “not a transactional sale, but more of a planning-based sale.”  Be creative when working with a client, create a plan that best suits their individual financial needs. 

See Anthony Tocco, Understanding and implementing QLACs in a retirement plan, Life Health Pro, May 22, 2015.

Special thanks to Jim Hillhouse for bringing this article to my attention.