Keeping Your Assets Secured

Meet Matt:

Matt is five years into retirement and is enjoying every minute of it. In addition to his IRA accounts, which total $580,000, Matt feels secure with his other sources of income, which include a pension and social security. He knows that within three years, he will need to take income from the IRA’s. Matt is concerned about the taxes he will need to pay once the Required Minimum Distribution (RMD’s) begin.

Matt meets with his Financial Professional, John, to discuss his concerns. During their conversation, John recommends a Qualified Longevity Annuity (QLAC), as a strategy to shelter $200,000 of his qualified assets from being subjected to an RMD until his 85th birthday.

Matt is puzzled, and questions John:

What is a QLAC?

A QLAC stands for Qualified Longevity Annuity Contract; they are a type of annuity designed to shelter of portion of qualified assets to postpone Required Minimum Distribution (RMD’s). A qualified asset can be an IRA, SEP IRA, 403(b), or 401(k).

John went on to further explain that if Matt were to invest in a QLAC before he reaches his 73rd birthday, he will not only defer his distributions until age 85, but he could also generate a guaranteed income stream for the remainder of his life.

Matt was happy he spoke with John and invested in the QLAC. He left the meeting with the confidence that he can sail further into retirement with a financial future that may be more secure.

Sail into retirement with confidence.