How To Shrink Your RMDs in 2021 and Beyond by Jennifer Lang Financial Services Qualified Longevity Contracts (QLACs) are a special type of annuity, that let you cut RMDs by up to 25% from your IRAs, reduce the taxes you pay and guarantee more lifetime income in old age.
Digital Asset Direct by Jennifer Lang Financial Services, LLC
Houston, Texas | February 09, 2021 10:05 AM Eastern Standard Time
There’s one little-known way to reduce “RMD shock”: Purchasing a qualified longevity annuity contract. A QLAC is a type of deferred income annuity designed to meet IRS requirements.
Pre-retirees can place up to 25% of their 401k, 403b or IRA balance — up to $135,000, whichever is less — in a QLAC.
Postponing up to 25% in RMDs allows more income when you really need it. In your 80s/90s.
Learn more: JenniferLangFinancialServices.com