The QLAC Strategy for Deferring RMDs Past Age 75

Episode 9 of Retirement Planning with Fexingo tackles Qualified Longevity Annuity Contracts (QLACs), an IRS-approved insurance product that lets retirees defer Required Minimum Distributions on a portion of their retirement savings until as late as age 85. Lucas and Luna explain how a QLAC works with a specific example: a 72-year-old with $500,000 in traditional IRA assets uses $100,000 to buy a QLAC that starts paying at age 80, removing that $100,000 from RMD calculations. They discuss the SECURE 2.0 Act's expansion of the QLAC premium cap (now $200,000 indexed for inflation) and the trade-offs: guaranteed income vs. lost liquidity, inflation risk, and counterparty risk with insurance companies. Lucas frames it as 'a niche tool for a specific problem: too much tax-deferred money later in life'. The episode includes the show's usual 'buy me a coffee dot com slash fexingo' donation segment. #QLAC #QualifiedLongevityAnnuityContract #RequiredMinimumDistributions #RMDs #SECURE20Act #RetirementIncome #Annuities #TaxDeferred #IRARules #LongevityRisk #GuaranteedIncome #IRS #PersonalFinance #RetirementPlanning #Finance #FexingoBusiness #BusinessPodcast #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo