What Is a Qualified Longevity Annuity Contract? | SafeMoney.

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover what a Qualified Longevity Annuity Contract (QLAC) is and how it can enhance your retirement planning. Learn more at SafeMoney.com. Related Articles What Is An Annuity | Annuity Guide Qualified Annuities Vs Non Qualified Annuities What S... Annuity Options Explained | Annuity Guide Independent Annuity Advice | Annuity Guide Key Takeaways A QLAC allows you to defer a portion of your retirement savings for later income. It can provide guaranteed income for life, enhancing financial security. Consider using retirement calculators to assess your needs. QLACs can help manage longevity risk by providing income later in retirement. Consult a SafeMoney certified advisor for personalized retirement strategies. Quick Answer A Qualified Longevity Annuity Contract (QLAC) is a deferred income annuity designed to provide guaranteed income starting at an advanced age, typically 85, helping to manage longevity risk and defer required minimum distributions. SafeMoney Editorial Team  |  Reviewed by Licensed Financial Professionals  |  Updated Regularly Understanding Qualified Longevity Annuity Contracts (QLACs) Since 2011, SafeMoney.com has been at the forefront of providing reliable retirement solutions. A Qualified Longevity Annuity Contract (QLAC) is a unique financial product designed to offer a steady income stream later in life. Unlike traditional annuities, QLACs begin payouts at a specified age, typically 85, ensuring financial security during the later stages of retirement. Benefits of Incorporating QLACs into Retirement Planning QLACs serve as a strategic tool for retirement planning, offering several benefits: Deferral of Required Minimum Distributions (RMDs): By deferring RMDs, QLACs can help manage taxable income effectively. Guaranteed Lifetime Income: QLACs provide a reliable income stream, reducing the risk of outliving your savings. Tax Efficiency: As QLACs are funded with pre-tax retirement accounts, they offer potential tax advantages. How QLACs Work: A Detailed Overview QLACs are funded using qualified money from retirement accounts such as IRAs or 401(k)s. This funding method allows retirees to exclude the QLAC value from RMD calculations, providing a strategic advantage in retirement planning. Feature QLAC Traditional Annuity Payout St