Deferred Income Annuities and QLACs

Overview

This course provides a clear overview of two unique retirement planning tools now available: deferred income annuities (DIAs) and qualified longevity annuity contracts (QLACs). The course fully explores DIAs: what they are, how they are designed, and how they work. The second part of the course explains the QLAC rules and how deferred income annuities can be used to generate a guaranteed income stream for IRA, 401(k) and 403(b) participants, exempting the funds used to purchase the QLAC from the minimum distribution calculation. The course concludes with a discussion of annuity placement and suitability issues, explaining how deferred income annuities and guaranteed income can be positioned as part of a balanced retirement income plan.

Learning Objectives

Upon completion of this course, students will be able to:

  • demonstrate an understanding of deferred income annuities: their purpose, design and function
  • cite features and limitations that are common to today's DIAs
  • show an understanding of DIA payout structures
  • explain the rules that allow QLACs to be purchased with funds in an IRA or a defined contribution plan
  • show how QLACs can lower required distributions and generate a guaranteed income stream

Designed For

Licensed life/health insurance producers; financial advisors
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