SOURCE: AnnuityAdvantage

AnnuityAdvantage

May 11, 2017 14:04 ET

Delay Retirement Account Distributions for More Long-Term Wealth

AnnuityAdvantage CEO tells how to delay required minimum distributions with a specialized annuity and keep more in your retirement plan for more future income

MEDFORD, OR--(Marketwired - May 11, 2017) - Taking required minimum distributions (RMDs) erodes the value of your IRA, 401(k) or SEP and increases your taxable income. But you can delay RMDs by buying a qualified longevity annuity contract (QLAC), according to a recent article in Physician's Money Digest.

"A QLAC works for people who want to keep more of their retirement plan intact and tax-deferred," writes Ken Nuss, CEO of AnnuityAdvantage, an online annuity marketplace.

A QLAC is a type of deferred income annuity designed to meet specific IRS requirements. You choose when to start receiving a stream of lifetime income -- by age 85 at the latest. The QLAC thus lets you delay RMDs on some of your retirement-plan money up to 14 ½ years, he writes.

The money in the QLAC is excluded from assets on which future RMDs are calculated. For instance, at age 75, $125,000 in a QLAC avoids $5,459 in RMDs you'd otherwise have to accept. At age 80, you'd be exempt from $6,684 in RMDs, he writes.

Additionally, you'll create a larger stream of income you can't outlive. The earlier you buy the QLAC, the longer you'll get to build up principal and the bigger payout you'll ultimately get, Nuss writes.

Over your lifetime, you cannot allocate more than 25% of the total of all your IRAs or $125,000, whichever is less, in a QLAC.

The article can be read online at http://tinyurl.com/mt772l7.

Wait for higher rates or invest now?

Should you invest in a fixed annuity now or wait because rates may be higher in the future? In a Q&A with Casey Dowd, author of The Boomer column on Fox Business, Nuss offers strategies.

Read it at http://tinyurl.com/m86mesr.

Rates on fixed annuities have risen a bit in 2017. They now pay up to 3.50 percent for a 10-year annuity, up to 3.25 percent for a five-year contract, and up to 2.10 percent for a three-year annuity, according to AnnuityAdvantage's database of 290 fixed-rate annuities from 35 insurers.

Based in Medford, Oregon, AnnuityAdvantage is a leading online provider of fixed-rate, fixed-indexed and immediate income annuities. Its team sorts through the array of annuity options to provide each client with product offerings custom tailored to their specific situation. Every annuity offered is filtered, screened and analyzed for client suitability.

More information is available at 800-239-0356 or https://www.annuityadvantage.com. Twitter: @AnnuityAdvantag. Facebook: https://www.facebook.com/AnnuityAdvantage.

#annuities #personalfinance

Image Available: http://www.marketwire.com/library/MwGo/2017/5/10/11G138463/Images/nuss,_ken_formal-c7cb9158377dbe3e8417f6c6a9149c51.jpg

Contact Information