The first one is the United States, where such a pure collect-insurance-or-lose-premium contract is permissible (and available) as a so-called QLAC
, or "qualifying longevity annuity contract," for tax-sheltered retirement assets.
Avis, "Evaluation of the Quality of Life in Adult Cancer Survivors (QLACS
) scale for early post-treatment breast cancer survivors," Quality of Life Research, vol.
If you want income to start at a later date, that's s a QLAC
[qualified longevity annuity contract] or deferred income annuity.
, which are income annuities that start on or before age 85 to protect against running out of money if a participant lives longer than he expected;
"We are a technology company first and a personal finance business second," Matt Carey says of his New York City-based firm, Abaris, which helps online clients convert their assets into a guaranteed retirement income stream with income annuities, chiefly with an emerging product called QLAC
, short for qualified longevity annuity contract, an annuity that's held inside a qualified retirement account and funded by RMDs from that account.
Approved in 2014 for use in traditional IRAs and other retirement plans, QLACs
allow owners to invest a portion of their prior year IRA balance in a QLAC
, therefore avoiding required minimum distributions until the maximum age of 85.
Yet, for all the initial excitement, QLACs
have been slow to move out of the gate.
Abaris is the only online destination that allows consumers to receive real time QLAC
quotes in under 2 minutes and execute a seamless purchasing process.
For a detailed discussion of the issues in this area, see "IRS Finalizes Regulations on Use of QLACs
," by Kristin Norberg, in the January 2015 issue of The Tax Adviser.
Those regulations proposed to exempt QLACs
from the RMD rules.
"The main reason these final regulations are important is that the value of the QLAC
is excluded for purposes of a retiree's RMD [required minimum distribution] calculation (other than the obvious: QLACs
provide protection against outliving assets).
* The final regulations on QLACs
can be found in Internal Revenue Bulletin: 2014-30 at www.irs.gov/irb/2014-30_IRB/ar07.html.