Securing Retirements for Ten Years
In 2014 the U.S. Treasury Department issued a new rule that allowed retirees to use a portion of their qualified savings to purchase a deferred income annuity. With that, Qualifying聽Longevity Annuity Contracts (QLAC) were born. The new regulation, which was strengthened with the SECURE Act in 2022, provides a strategic tool for managing retirement income, optimizing tax outcomes, and providing financial security. This year, we鈥檙e celebrating the tenth anniversary of QLACs, and revisiting its many benefits which can help provide financial security in retirement.
A Qualifying Longevity Annuity Contract (QLAC) is a type of deferred income annuity specifically designed to be purchased with funds from a qualified retirement plan, such as an IRA or 401(k). The primary purpose of a QLAC is to provide a guaranteed income stream for life starting at a future date, with payments beginning as late as age 85.
Despite these benefits, QLACs may not be right for everyone. For example, they don鈥檛 offer the flexibility of some other investment options; when you purchase a QLAC, you do not have access to those funds until the annuity payouts begin. Consult your financial advisor before purchasing a QLAC.
See how 性世界传媒鈥檚 Qualifying Longevity Annuity Contract (QLAC) feature helped Wespath Benefits and Investments provide security and peace of mind in retirement with their award-winning LifeStage Retirement Income program.
For more information, please contact 性世界传媒鈥檚 Institutional Retirement Solutions Group at: RetirementIncome@PacificLife.com
In order for the contract to be eligible as a QLAC, certain requirements under Treasury regulations must be met, including limits on the total amount of purchase payments that can be made to the contract. Qualified contracts, including traditional IRAs, Roth IRAs, and QLACs, are eligible for favorable tax treatment under the Internal Revenue Code (IRC). Certain payout options and features may not comply with various requirements for qualified contracts, which include required minimum distributions. Therefore, certain product features, including the ability to change the annuity payment start date, accelerate payments, and to exercise withdrawal features or payout options, may not be available or may have additional restrictions.
All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.
性世界传媒, its affiliates, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer鈥檚 particular circumstances from an independent tax advisor or attorney.
性世界传媒 is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products. 性世界传媒, its affiliates, its distributors, and respective representatives do not provide any employer-sponsored qualified plan administrative services or impartial advice about investments and do not act in a fiduciary capacity for any plan.
性世界传媒 refers to 性世界传媒 and its affiliates, including 性世界传媒 & Annuity Company. Insurance products can be issued in all states, except New York, by 性世界传媒 or 性世界传媒 & Annuity Company. In New York, insurance products are only issued by 性世界传媒 & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.