Update on QLACs?
I haven’t read or heard much about QLACs lately. Have there been any recent changes–or proposed changes–in current or proposed SECURE acts? Are they still considered beneficial in IRAs?
I haven’t read or heard much about QLACs lately. Have there been any recent changes–or proposed changes–in current or proposed SECURE acts? Are they still considered beneficial in IRAs?
Permalink Submitted by Alan - IRA critic on Wed, 2022-04-13 15:56
No recent changes to QLACs including the Secure Act and Secure Act 2.0 proposals. However, the QLAC limit has been increased to 145,000 via inflation adjustment. A QLAC may or may not be beneficial since it delays receipt of RMD income to later years when the taxpayer would more likely be filing single. Actual mortality of the taxpayer/spouse is also a factor, as is various insurance company interest rate, mortality assumptions, and QLAC forms offered.