What is a qualified longevity annuity contract (QLAC)? And why should you care?
Are you age 70 1/2 or older and facing Required Minimum Distributions (RMDs) from your retirement accounts? Not a bad problem to have! Too much money!
If you anticipate a longer than average lifespan and are receiving sufficient income from Social Security, pensions, and investment returns and "you'd
rather not drain your IRA, because you worry about running short when
you're older and health costs increase." Then consider a QLAC which "allow savers to defer distributions from a portion of their assets in
IRAs or employer-sponsored qualified plans until as late as age 85." Mark Henricks explains that the purchase is irrevocable so you need to consult a trusted fiduciary (financial professional who must put your interests first and foremost) and preferably one who does not sell the product. Learn more at: https://www.thestreet.com/story/13663150/1/how-retirement-savers-are-stretching-their-iras-the-qlac-archipelago.html