One of the fears shared by many retirees is running out of money. QLACS are a type of deferred annuity that hit the marketplace around 2014 designed to guard against this concern. QLACS, short for Qualified longevity annuity contracts, are designed to provide income late in life. They are purchases with retirement account funds and are tax deferred. The funds inside the QLAC do not count toward the account value for purposes of determining required minimum distributions. Tax deferred growth can be maintained through age 85. Prior to passage of Secure 2.0, QLAC values were limited to the lesser of 25% of the retirement account value or $145,000 (adjusted for inflation in 2022). Now taxpayers can purchase up to $200,000 and defer taking those funds until age 85.
People regularly ask "how do I plan for my loved one with special needs." There…
At the Elder Law Practice, we don't assume everyone needs a trust. We tend to…
On March 11, 2025, my father, James L. McGuffey passed from this life. The greatest…
Qualified Income Trusts (also known as Miller Trusts or a QIT) are necessary when the…
Trusts, like everyone else, pay taxes when they earn income or sell capital assets for…
People often visit us and ask about using a trust to protect assets in the…