Annuity glossary
QLAC (Qualified Longevity Annuity Contract)
A deferred income annuity purchased with money from a traditional IRA or workplace retirement plan. The amount you put in, up to an IRS dollar cap, is excluded from required minimum distribution calculations until payments begin, which you can delay as late as age eighty-five. It converts retirement savings into guaranteed income for late life. Tax treatment depends on current law and the contract's facts, so individual guidance may be appropriate. Any guarantee is backed by the claims-paying ability of the issuing insurer.
Any guarantee is backed by the claims-paying ability of the issuing insurer.
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