Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Saturday, July 19, 2014

6 Highlights of IRS QLAC Regulations

ChecklistAs 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:

  1. QLAC value can be excluded from RMD calculations
  2. QLAC payments must begin by the first of the month after age 85
  3. Limits apply to the amount of retirement funds that may be invested in a QLAC
  4. The limits are per spouse with a retirement account
  5. Variable or equity-indexed annuity contracts are not allowed
  6.  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.


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