Learn How to Never Run Out of Money In Retirement

Qualified Longevity Annuity Contracts (Pronounced 'cue-lacks')

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  • What Are QLACs?

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    New Retirement Income Guarantee

    In July 2014, the US Government approved a new life annuity product designed for current and future retirees who are concerned about outliving their retirement savings. The new product, a Qualified Longevity Annuity Contract or "QLAC," may be purchased using qualified retirement account assets (e.g. IRA funds) without triggering a taxable event.  A QLAC purchase also reduces the Required Minimum Distributions after the IRA owner reaches age 72.  Click here to see our Blog Article on the 8 Signs You Need a QLAC or click the button below to open a video.

    8 Signs You Need A QLAC


  • What Are Required Minimum Distributions (RMDs)?

    Want to decrease Required Minimum Distributions?

    RMDs - Required Minimum Distributions Defined

    IRAs and similar retirement savings plans are subject to Required Minimum Distribution or “RMD” tax rules.  Under IRS rules, assets held by an IRA owner compound tax-deferred.  In retirement, distributions from retirement savings plans (such as IRAs) are treated as taxable, ordinary income.  RMD rules force older taxpayers (over the age of 72) to receive distributions and pay tax on past contributions and earnings in their qualified retirement accounts. If an RMD is not distributed after age 70 and 1/2 (72 starting in 2020), a 50% penalty is imposed on the distribution shortfall.  Click here to estimate RMDs.  Good news  -- a QLAC purchase can substantially reduce the required RMD distribution amount and the corresponding tax obligation - without creating a penalty for the taxpayer.  See our videos page for several examples.

    Watch Introductory Video

  • Can A QLAC Conserve Assets?

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    A QLAC Conserves Assets By Deferring Taxation

    A QLAC provides a lifetime annuity once distributions start.  Between the purchase date and the time payments begin (no later than age 85), no taxation is triggered. While all distributions are taxed as ordinary income, this taxation only occurs when the QLAC owner or beneficiary receives annuity payments.  In this way, a  QLAC performs like any deferred annuity – growth in the value of the contract is only taxed once received by the annuity's beneficiary. See our 1-2-3 RMD Calculator Page.  It allows you to compute what deferrals would be for you (or click the button below.)

    Calculate My Tax Deferral

  • How Does A QLAC Keep Assets Growing Tax-Free?

    Like to keep more of your tax-qualified assets growing tax-free?

    Allow More of Your Retirement Assets To Keep Growing

    Qualified Longevity Annuity Contract “QLAC” owners may wait up until age 85 to start payments from a QLAC annuity. Also, a QLAC can be purchased before retirement. The more time between the purchase date and the annuity start date, the larger the annuity payment from the QLAC. Also, the QLAC is not considered in computing the Required Minimum Distributions after age 72.   As a result, early in retirement (when income may not be needed) taxable income is deferred to later on in the retirement when the QLAC payments occur. Click here to learn about our Failsafe(SM) Strategy for maximizing income during retirement.  To learn how much income a QLAC will generate click the button below and receive a comparative quote from Immediateannuities.com.

    Calculate My QLAC Benefit

  • Does A QLAC Have A Maximum Purchase?

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    Alas, Yes, QLACs Do Have Limits

    The Qualified Longevity Annuity Contract or "QLAC" premium purchase is limited to 25% of a retirement plan (i.e. assets held in tax-qualified accounts such as an IRA), but (as of 2020) no more than $135,000 from all plans.  However, QLAC contribution limits follow the individual.  So, for example, if a husband and wife each have an IRA, with a balance of $540,000, both individuals may purchase their own separate QLAC, each with a premium of $135,000.  For the example couple, then, the maximum combined QLAC purchases equal $270,000.  See our video about a couple examining a QLAC purchase to see how this works.

    Calculate My Maximum QLAC Purchase

  • Are You Worried About Lifetime Income?


    Concerned About Running Short of Income During Retirement?

    How QLACs Can Keep You From Running Short of Income During Retirement?

    In the past, retirees were advised to limit withdrawals to no more than 4% of their savings each year.  So doing, they would not outlive their assets. Today, two things have changed.  First, people are living much longer.  Second, equity investment returns are volatile, and fixed income yields are at record lows.  As a result, even the 4% faithful are at risk of dissipating their savings and becoming dependent on just social security.  A Qualified Longevity Annuity Contract is a private-sector solution that offers an additional source of guaranteed income to a senior – and one that cannot be outlived. Click to learn about our Failsafe(SM) Strategy for maximizing income during retirement.  To learn how much income a QLAC will generate, click the button below, and receive a comparative quote from Immediateannuities.com.

    Calculate My QLAC Benefit

  • What Makes QLAC Annuities Different?

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    What Makes QLAC Annuities Different?

    An immediate or deferred annuity runs into several obstacles when funded by an IRA.  As a special creature of the tax regulations, a QLAC overcomes these hurdles. 1) QLAC premiums can be paid with IRA assets without triggering withdrawal taxation. 2) Because the QLAC is not an IRA asset, the IRA’s RMD is reduced. As a result, the QLAC maximizes a retiree’s ability to shift income and taxes to later retirement years.  Traditional annuity choices cannot achieve these dual objectives.  To see a video comparing a QLAC with IRA only and Immediate Annuity options, click here.

    Link to Video - QLAC versus Other Investments

  • Are you Worried About Outliving Retirement Assets?


    Are you concerned about outliving your retirement assets?

    You Cannot Outlive Your QLAC Annuity Income

    The IRS requires that Qualified Longevity Annuity Contract “QLAC” payments be for the life of the owner of the contract (or the owner and his/her spouse.) The QLAC owner elects when the payments begin, but not later than his or her 85th birthdate. Once started, QLAC annuity payments continue until the annuitant(s) death, no matter how long the annuitant (or annuitants) live.  Click here to see our blog piece comparing QLACs to Social Security.

    Calculate My QLAC Benefit

  • Do You Hope to Live to 100?

    Cartoon drawing of three people running into the distance with the numbers 85 and 95 between them.

    QLACs Can Provide Income To Those Who Plan To Live To 100.

    Qualified Longevity Annuity Contracts “QLACs” work great, whether you live to 100 or not! Payments have no time limit. Distributions cease only when the owner (or owner and spouse) die(s.) What is the downside? If a QLAC owner (or owner and spouse) dies before full recovery of the premium paid, a policy election allows the unrecovered amount to be paid to a beneficiary.  Accordingly, a QLAC might distribute a simple return of premium at premature death(s), or where long lives are involved, annuity payments that total many multiples of the QLAC premiums paid. To see the difference between QLAC plans' benefits both with and without return of premium policies, click here.

    Calculator Link - Estimate My Longevity

Authoritative Links About QLACs

And Other Retirement Benefits

  • "Longevity annuities—a financial innovation that provides protection against outliving your money late in life—have the potential to reshape the retirement security landscape."
  • "One of the main purposes of the QLAC is to help overcome the 'longevity problem' -- that is, the fact that many Americans will outlast their retirement savings because they're living longer than ever before."
  • "Typically bought at retirement, a longevity annuity offers a guaranteed stream of income beginning in ten or 20 years at a markedly lower cost than a conventional annuity that begins paying out immediately."
  • "The advantage of these QLAC plans is that they provide some guaranteed regular income until death, so they can supplement Social Security. And the deferred feature allows you to generate much more income per dollar invested."
  • "By using a QLAC, you have taken care of income needs post-age 85, and this allows you to free up the rest of the...portfolio for investment, liquidity and legacy planning."
  • Regardless of one's political affiliation, there is no denying that QLACs are good for the country and a positive choice for anyone with retirement plan assets or a traditional IRA.
  • "Simulations...using current asset returns and the 2012 Society of Actuaries tables to predict longevity show that a retiree with a balanced portfolio can reduce the risk of shortfall by as much as 39% through the purchase of a QLAC."
  • “the transfer of longevity risk provides a significant increase in retirement readiness for the longest-lived quartile…. Sensitivity analysis on the QLAC premiums resulting from likely increases in future interest rates provides even more favorable results.
  • More people are living into their late 80s, 90s and even past 100. But longevity isn’t so great if you run out of money.To avoid that risk, you can buy longevity insurance. It’s a special kind of deferred annuity that assures you’ll have a guaranteed income forever, even if you live to 100 or beyond.
  • "About 80 percent of women will be the sole decision-maker for their money at some point; usually later in life. Many fear living so long that they will run out of money and have to depend on family members. There's an insurance product to cover this risk. Qualified Longevity Annuity Contracts (QLACS)..."
  • "Simply, the QLAC is a tax-deferred annuity that avoids the RMD [required minimum distributions]."
  • "Estimating the benefit of avoiding RMDs is complex...the savings at today’s bond rates from a $125,000 QLAC was about $10,000 at a 36% tax rate. This tax savings will.. increase in a higher bond-yield or higher tax-rate environment..."
  • "After the payments begin, the QLAC provides a steady income as long as you live. That may be a while for today’s 70-year-old gal since there’s a 50 percent chance that she’ll live to age 88."
  • "The ability to accumulate mortality credits still means it can be very effective as a fixed income alternative for those who fear they may not have enough money to fund a retirement well beyond their life expectancy. And if retiree intends to spend all of his/her assets anyway, and the only available dollars for retirement are held in an IRA or other retirement account, the QLAC is an effective means to engage in such a strategy. "
  • "What to do if your defined benefit pension plan is frozen?...If you determine that you’ll have a shortfall between the income you’ll need in retirement and your expenses, you’ll have many options...save more, reduce retirement expenses, invest more aggressively, work longer, delay Social Security....You might also consider buying products that provide guaranteed income, similar to that provided by a defined benefit pension plan, such as a qualified longevity annuity contract (QLAC)...".

How Much Income Can You Receive In Retirement?

And How Do QLACs Defer Taxes

Go to Calculators or Click Below

Calculate Maximum QLAC Purchase Calculate QLAC Impact On My RMDs and Taxes
 Calculate How I Can Maximize My Retirement Income Learn How Long I am likely to Live

Which Life Insurance Carriers Offer QLACs?

Life Insurance Carriers Currently Offering QLAC Products to Individuals

Mouseover or Click Logos to See AM Best Ratings and Links to Agents


    Americo Insurance Company Logo



    Americo Life Insurance

    AM Best Rating: A

    Year Established: 1922

    Headquarters: Kansas City, MO


    AIG Insurance Company Logo


    American General (part of AIG)

    AM Best Rating: A1

    Year Established: 1850

    Headquarters: New York, NY

    Link to Agent

  • Brighthouse Financial Company Logo



    Brighthouse Financial


    AM Best Rating: A

    Year Established: 1868 (Spun off by Metlife in 2016)

    Headquarters: New York, NY

    Link to Agent


    Foresters Financial Company Logo



    Forestors Financial (Formerly First Investors)

    AM Best Rating: A

    Year Establised: 1874

    Headquarters: New York, NY

    Link to Agent

  • Forethought Insurance Company Logo



    Forethought Life Insurance Company

    AM Best Rating: A

    Year Established: 1985

    Headquarters: Indianapolis, IN



    Guardian Life Insurance Company Logo



    Guardian Life Insurance

    AM Best Rating: A++

    Year Establised: 1860

    Headquarters: New York, NY

    Link to Agent


    Lincoln Financial Group Company Logo



    Lincoln Financial Group

    AM Best Rating: A+

    Year Established: 1905

    Headquarters: Radnore, PA


    Link to Agent

  • mass_mutual




    Mass Mutual Financial Group

    AM Best Rating: A++

    Year Establised: 1851

    Headquarters: Springfield, MA

    Link to Agent

  • Mutual of Omaha Company Logo

    Mutual of Omaha

    AM Best Rating: A+

    Year Established: 1909

    Headquarters:  Omaha, NE


    Link to Agent

  • New York Life Insurance Company Logo

    New York Life

    AM Best Rating: A++

    Year Establised: 1845

    Headquarters: New York, NY

    Link to Agent

  • NW_mutual_logo

    Northwestern Mutual

    AM Best Rating: A++ ​

    Year Established: 1857

    Headquarters:  Milwaukee, WI

  • Pacific_Life_2





    Pacific Life

    AM Best Rating: A+

    Year Establised: 1868

    Headquarters: Newport Beach, CA

    Link to Agent

  • Principal


    Principal Financial Group

    AM Best Rating: A+

    Year Establised: 1879

    Headquarters: Des Moines, IA

    Link to Agent

  • symetra




    AM Best Rating: A

    Year Establised: 1990

    Headquarters: Des Moines, IA

    Link to Agent






    Thrivent Financial

    AM Best Rating: A++

    Year Establised: 2002*

    Headquarters: Minneapolis, MN


    *Thrivent is the product of a merger of Aid Association for Lutherans (AAL) and Lutheran Brotherhood (LB), which had been established in 1902 and 1917 respectively.

Watch Videos and Case Studies Explaining QLACs

Click tab to choose a video.

  • Single Investor Example
  • Married Couple Example
  • Comparison: Immediate Annuity, IRA Only, IRA & QLAC
  • 8 Signs You Need a QLAC
  • For Women Over 60
  • RMD & QLAC Basics
  • Failsafe (SM) Case Study
  • Important Notice

The foregoing videos and their examples do not portray any one person’s situation.  The company prepared the Dramatizations to introduce viewers to a new financial product, a Qualified Longevity Annuity Contract.   The individual circumstances of a viewer are likely to vary from the examples in the videos. The videos are not tax or legal advice.  The financial information and calculations depicted in these videos are supplied from sources we believe to be reliable.  However, we are unable to guarantee their accuracy. These materials are not intended to replace the viewer’s legal, tax, and accounting advisors.   Any viewer should seek advice from his or her qualified advisors before entering into a QLAC purchase.  The Company accepts no responsibility for any outcome arising from a QLAC purchase or a failure to make a QLAC purchase.  This material is not intended to be used, nor can it be used by any taxpayer to avoid U.S. federal, state, or local tax penalties. 

  • Free QLAC & RMD Analysis & Annuity Income Estimate

  • Complete the form below or call us at 800-460-4166. A QLACguru will develop a free illustration of how a QLAC might work for you.

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