A reporter called me to ask whether investing in a QLAC would reduce a retiree’s RMDs and the tax that must be paid on them.
The short answer is Yes.
The complete answer is, think about the QLAC decision as part of a broader consideration of your retirement finances. Properly combined with your IRA investments, it can provide steady, lifetime income and may help you to fund a legacy to your heirs.
Let’s examine how you might create a retirement income plan that balances various investment opportunities.