Breaking the QLAC Code

We're diving headfirst into the world of Qualifying Longevity Annuity Contracts (QLACs). As you navigate the complex landscape of retirement planning, understanding QLACs can be your secret weapon to secure a comfortable and worry-free retirement. We'll start by breaking down what QLACs are and how they work. You'll learn about their unique ability to provide a steady income stream in your later years, helping you manage the risk of outliving your savings. We'll explain how QLACs are purchased within a retirement account and how payments are deferred until an advanced age, up to 85. Next, we'll delve into the recent changes to QLACs under the Secure Act 2.0. You'll discover how the Act has made QLACs more attractive within defined contribution plans by providing more lenient rules. We'll discuss the elimination of the 25% limit on premiums paid for a QLAC and the increase in the dollar amount to $200,000. We'll also touch on the changes to survivor benefits, particularly in relation to special needs trusts. You'll understand how the Secure Act 2.0 allows a special needs trust to provide for a charitable organization as the remainder beneficiary without causing the loss of the special rules. Whether you're a seasoned investor or just starting your retirement planning journey, this episode will equip you with the knowledge you need to make informed decisions about QLACs. So tune in, and let's break the QLAC code together.