How Qualified Longevity Annuity Contracts Reduce RMD Tax Bills Mid-Career

Episode 34 of Annuities with Fexingo. Lucas and Luna explore a mid-career strategy for reducing Required Minimum Distribution taxes using Qualified Longevity Annuity Contracts (QLACs). They walk through a concrete case: a 55-year-old with a $1.2 million traditional IRA defers $200,000 into a QLAC that starts paying at age 85. The payoff? Lower RMDs from age 72 to 85, reducing taxable income by roughly $10,000 per year in today's dollars, and allowing more Roth conversions in the gap years. They compare QLACs to deferred income annuities, discuss the SECURE Act's 25% cap rule, and address the trade-off of locking up funds for three decades. Specific numbers and IRS rules throughout. #QLAC #RequiredMinimumDistributions #RMDTaxPlanning #LongevityAnnuity #MidCareerPlanning #IRA #RetirementIncome #SECUREAct #TaxDeferral #RothConversion #Annuities #RetirementPlanning #Finance #FexingoBusiness #BusinessPodcast #PersonalFinance #TaxStrategy #LongevityRisk Keep every episode free: buymeacoffee.com/fexingo