RMDs and guaranteed income in your Traditional IRA.

By Ken Arvidson, MSFS, CLU

March 5, 2015

The IRS has issued new guidelines to help guarantee income in your retirement, and at the same time reduce your Required Minimum Distribution requirement every year!

Qualified Longevity Annuity Contracts (QLACs) allow you to put up to the lesser of 25% or $125,000 of your Traditional IRA balance into a Deferred Income Annuity (DIA) eliminating your RMD by that amount, deferring your distribution up to Age 85, and guaranteeing a monthly income!

Take a look at this example:

A 70-year-old male repositions $100,000 to a QLAC with a Return of Premium for a $2400 monthly income and 3% annual bump at Age 85.

OR

He takes a Life Option and 3% bump at Age 85 for a $3,000 monthly income. He could use the $600 monthly difference to fund $200,000 of life insurance.

It’s your choice, and there are lots of options. Contact us for more information and advice.

Email Ken if you need guidance.


This article was featured in 4SIGHT. Sign up free to receive 4SIGHT, our monthly newsletter of helpful financial articles, tips, events, and monthly IRS deadlines. 

 

   

Back to List

Client Center

QuickBooks Desktop

QuickBooks Online

Using Your Client Organizer
How to Review My 1040
Using File Exchange
Remote Payroll

Go Mobile

Tax & Accounting: access your files from your mobile device. Learn More...

iOS App | Android App

TD Ameritrade: access your account with your iPhone. Learn more…

iOs App

Phone: (708) 695-5300 • Fax: (708) 456-9130