How the QLAC Can Defer RMDs and Boost Retirement Income

Episode 101 of Retirement Planning with Fexingo explores the Qualified Longevity Annuity Contract (QLAC), a little-known IRS-approved annuity that lets retirees defer required minimum distributions (RMDs) on a portion of their retirement savings — up to the lesser of $200,000 or 25% of account balances. Lucas breaks down the mechanics: how a QLAC purchased inside a 401(k) or traditional IRA can delay RMDs until age 85, reducing taxable income in early retirement and potentially lowering Medicare IRMAA surcharges. Luna asks about the trade-offs, including liquidity loss and inflation risk, and the hosts walk through a concrete example for a 72-year-old retiree with a $1 million IRA. They also touch on the SECURE Act 2.0 changes that raised the QLAC premium limit. The episode closes with a look at how QLACs fit into a broader retirement income strategy alongside Social Security and pensions. #QLAC #LongevityAnnuity #RMD #RequiredMinimumDistribution #IRS #SECUREAct2.0 #RetirementIncome #Annuity #IRA #401k #TaxPlanning #MedicareIRMAA #FexingoBusiness #BusinessPodcast #Finance #RetirementPlanning #FixedAnnuity #DeferralStrategy Keep every episode free: buymeacoffee.com/fexingo