As the average life expectancy continues to increase many Americans are concerned that they might outlive their retirement savings. That is why more people are starting to consider qualified longevity annuity contracts (QLACs) as a retirement investment strategy. Last year the government approved the use of longevity annuities for IRAs and 401(k) plans. “A QLAC is a deferred-income fixed annuity into which individuals can move 25% of their qualified retirement savings accounts, up to a maximum of $125,000.” Clients have the option of deferring their payouts until they turn 85, thus giving them a guaranteed revenue stream as well as tax savings. Any person that is interested in learning more about QLACs or any other retirement investment strategy should speak with an estate planning professional.
See Paul Hechinger, QLACs Could Be the Next Big Thing, Financial Planning, October 19, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
