What is a Longevity Annuity? 2

The Basics of Longevity Annuities

Longevity annuities solve for guaranteed pension-type income starting at a future date of your choice. They have no annual fees, and annual contractual cost of living (COLA) increases can be attached at the time of application. You can defer payments for as little as two years or for as long as 45 years.

There are two types:

1. Longevity annuity

• Can be used in a non-IRA (non-qualified account), in traditional IRA, or a Roth IRA.

2. QLAC (qualified longevity annuity contract)

• Can be used in a 401(k) plan or a traditional IRA; can lessen taxes on required minimum withdrawals (RMDs);

• Defers payments for as long as age 85; and

• Can only use 25% of your total IRA amount or $125,000, whichever is less.

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