The Tax Professionals Blog — annuities
Retirement and Qualified Longevity Annuities
Posted by Lee Reams Sr. on
IRS Regulations finalized in 2014 provide some relief for individuals who want to stretch out their retirement funds by generally allowing taxpayers to use up to the lesser of 25% or $125,000 of their retirement account to purchase a qualified longevity annuity contract (QLAC) within the account. The amount used to purchase the QLAC is subtracted from the account balance and would thus reduce the RMD from the retirement account each year until a specified time in the future when distributions must begin from the annuity.