The Internal Revenue Service (IRS) is providing a new opportunity that will let people continue to grow a significant portion of their IRA. Under the new rules seniors will be able to deflect a chunk of their IRA until as late as the age of 85, and that amount will not be counted towards their Minimum Required Distribution (RMD). If this technique is done right, it will allow the individual to grow that chunk of money tax-deferred. There is a special type of annuity that this deferred money will have to be placed into called a Qualified Longevity Annuity Contract (QLAC). Senior citizens will be able to choose to hold off on having to tap into this QLAC until they reach the age of 85.
See George M. Fox, A new, liberating IRA option is available, Smoke Signals, March 31, 2016.
