How Qualified Longevity Annuity Contracts Defer RMDs

Episode 58 of Annuities with Fexingo explores Qualified Longevity Annuity Contracts, or QLACs—a specific type of deferred income annuity that can push Required Minimum Distributions from your retirement accounts to age 85. Lucas and Luna break down the IRS rules: the 25% account-value cap, the $200,000 lifetime limit, and how a QLAC can reduce RMD taxes in your 70s and 80s. They walk through a concrete example—a 65-year-old with a $1 million IRA—showing how a $200,000 QLAC purchase cuts RMDs at age 73 by roughly 20%. The discussion covers trade-offs: no liquidity after the contract starts, inflation risk without a COLA rider, and why a QLAC makes most sense when you have other assets to cover early retirement income. This episode includes a short, sincere listener-support segment for Buy Me a Coffee. No hot takes, no sales pitch—just a clear, specific explainer on a niche but powerful retirement planning tool. #QLAC #QualifiedLongevityAnnuityContract #DeferredIncomeAnnuity #RMD #RequiredMinimumDistributions #RetirementPlanning #AnnuitiesWithFexingo #FixedAnnuity #LongevityRisk #IRA #TaxDeferral #RetirementIncome #SECUREAct #IRS #Finance #BusinessPodcast #FexingoBusiness #RetirementStrategy Keep every episode free: buymeacoffee.com/fexingo