Page 1 of 1
"QLAC" annuities, one way to mitigate Required Minimum Distribution impacts
Posted: Sat Oct 31, 2015 9:33 am
by ochotona
There is a new since 2014 annuity vehicle, created by legal changes. The QLAC allows you to defer some of your Required Minimum Distribution (RMD) problem until age 85. This is important for people with significant conventional IRA and 401(k) accumulations. you can only buy a $125,000 QLAC, but every little bit helps. You can pass on assets to heirs in the QLAC, since many people do not live past age 85. This is a possibly good tool in the effort to avoid outliving one's money.
QLAC = "Qualified longevity annuity contracts (QLACs)"
http://www.marketwatch.com/story/13-rea ... 2014-11-18
http://marketwrapwithmoe.com/?podcastdo ... 151026.mp3
Re: "QLAC" annuities, one way to mitigate Required Minimum Distribution impacts
Posted: Sat Oct 31, 2015 9:36 am
by mathjak107
they look like they can be helpful to some but for many who could really benefit the cap on how much you put in is way to low to really have an effect . with 7 figures in my ira that would do very little .
those with a lo less likely are not worried about rmd's nor hve enough to tie up in an annuity so it kind of is in a weird wealth range to be a whol lot of benefit to those who could really benefit . .
Re: "QLAC" annuities, one way to mitigate Required Minimum Distribution impacts
Posted: Sat Oct 31, 2015 11:00 am
by barrett
I have to check these out. I might be in that "weird wealth range" when it comes to my tax-deferred IRA. A tool that can push back self-imposed withdrawals from an IRA even a couple of years could be worth checking out.
Re: "QLAC" annuities, one way to mitigate Required Minimum Distribution impacts
Posted: Sat Oct 31, 2015 1:26 pm
by mathjak107
the fidelity rip planner used to calculate rmd's using immediate annuity's so you could compare . they just released a new version recently but i have not played with it at all . perhaps it can now do qlacs
Re: "QLAC" annuities, one way to mitigate Required Minimum Distribution impacts
Posted: Sat Oct 31, 2015 4:45 pm
by MachineGhost
It seems only cost effective if paying the fees is significantly less than your taxes on RMD's. This is for an annuity not just to reduce the IRA balance by 25%, so you've got all the usual caveats. And get COLA, fer sure!