Ask Terry Questions Qualified Longevity Annuity Contract? Good idea?

Qualified Longevity Annuity Contract? Good idea?

By Terry Savage on February 20, 2023 | Insurance & Annuities

I have 550,000 in a traditional IRA and 50,000 in a Roth IRA. I’ll be 71 in May this year. I’ve not taken any money from my IRA since I retired 5 years ago. I get about $3650 in pension and social security. Would putting 200,000 into this QLAC to be used possibly when I may have to go into a nursing home be a good idea?

Terry Says

For those who don’t know, a QLAC is an annuity contract — with a twist. It starts payments later in life, although you give the money to the insurance company now. And waiting even a few years to take distributions, can make a huge difference in the monthly payment amount you receive. Since you’re already 71, and will be required to take RMDs in two years, when you’re 73, you might want to postpone the start date of this annuity until age 78 or 80.

Before doing this contact Stan Haithcock –at — t0 get a quote from a good insurance company on this product.



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