How QLACs Solve the Required Minimum Distribution Problem

Episode 11 of Annuities with Fexingo digs into Qualified Longevity Annuity Contracts, or QLACs—a little-known Treasury rule that lets retirees delay Required Minimum Distributions on a portion of their retirement savings. Lucas and Luna walk through the mechanics: how a $200,000 QLAC purchase can shrink your RMD base, the 25% cap, the $200,000 limit, and the trade-offs around liquidity and inheritance. They examine a real-world scenario from a 68-year-old with a $1.2 million IRA, showing how deferring RMDs on $200,000 could save thousands in taxes over eight years while securing lifetime income starting at age 85. The episode also touches on the SECURE Act changes that made QLACs more flexible, and why few advisors talk about them despite the clear math. A practical deep dive for retirees and near-retirees looking to optimize their tax brackets in retirement. #QLAC #QualifiedLongevityAnnuityContract #RMD #RequiredMinimumDistribution #RetirementPlanning #Annuities #TaxStrategy #IRA #LifetimeIncome #SECUREAct #DeferredIncomeAnnuity #LongevityInsurance #RetirementIncome #Finance #FexingoBusiness #BusinessPodcast #AnnuitiesWithFexingo #AnnuityLadder Keep every episode free: buymeacoffee.com/fexingo