Hello to our friends and clients:

Well it turns out you do have friends in Washington!!

Incredibly and against their better judgement the IRS made a stunning change to the Required Minimum Distribution from an IRA which begins at 70 ½.  It is really hard to believe but they recently passed the QLAC regulations which offer us a huge benefit.

 Until now: 

Every IRA holder was FORCED to withdraw money from their account every year starting at 70 ½ years of age, with the percentage you HAVE TO take out going up and up every year.  (by age 83 as an example you are FORCED to take out a whopping 8.6%) So how long can your IRA last and provide needed income if you are FORCED to continue to take out more and more?

The new QLAC (Qualified Longevity Annuity Contract) permits you to SHELTER up to $125,000.00 in money that does not have to comply with the RMD. You simply set these funds aside into a special QLAC Account and they can grow and grow until age 85 at which time you would begin withdrawing them.

 This is huge!

 I recently prepared a report for a client of ours “Tom”.  It showed if he SHELTERED the full $125,000.00 into a QLAC at age 62 and then started withdrawals at age 85, he would be withdrawing some $3,900.00 per month for the rest of his life with any overage going to his wife.  In other words if he lives until age 92 he would draw out some $327,600.00 in Guaranteed income from the $125,000.00 he SHELTERED at age 62.

 Hard to believe?  What is harder to believe is that VERY FEW folks have one of these and there is no telling how long the regulations will last. Is the IRS more worried about your Later-Years Retirement picture than you are??    Call today and let us email over your illustration.

 Thanking you

 

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