Saturday, July 19, 2014
As I have previously discussed, the IRS issued final regulations on qualifying longevity annuity contracts (QLACs) on July 1, 2014. Here are some of the noteworthy points from the regulations:
- QLAC value can be excluded from RMD calculations
- QLAC payments must begin by the first of the month after age 85
- Limits apply to the amount of retirement funds that may be invested in a QLAC
- The limits are per spouse with a retirement account
- Variable or equity-indexed annuity contracts are not allowed
- Cashing in earlier is not an option with QLACs
See Jared Trexler, IRS Regulations Create New Type of Retirement Income Annuity: The QLAC, Producers Web, July 7, 2014.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.