
QLACs
QLAC Limit Increased Effective January 1, 2020
The IRS QLAC limit for how much of your IRA you can convert into a QLAC (special longevity annuity) has increased from $130,000 to $135,000.
The IRS QLAC limit for how much of your IRA you can convert into a QLAC (special longevity annuity) has increased from $130,000 to $135,000.
Whether you can take your annuity as a lump sum depends on the kind of annuity you purchase, as well as when the annuity was purchased. The following annuities offer the ability to take a lump sum: Fixed annuities Variable annuities Indexed annuities However, if you purchased the annuity within the last few years, you … <a href="https://www.blueprintincome.com/resources/retirement-income/qlac-qualified-longevity-annuity-contract/qlac-limit-increased-effective-january-1-2020/">Continued</a>
There were steep declines in longer-term Treasury yields in March, largely precipitated by the Fed’s comments that they were less likely than previously assumed to raise rates this year, next year, and even in 2021.
One part of the The Retirement Plan Simplification and Enhancement Act, calls for making upward revisions of the QLAC limit. Under the new proposed rules, you could contribute up to $200,000 or 100% of your 401(k) or IRA account balance to a QLAC, but it is still up in the air as to whether this will get passed.