A Special Annuity to Lower Medicare Costs
Clients who will begin taking RMDs (Required Minimum Distributions) from IRAs might lower their Medicare costs by using a Qualified Longevity Annuity Contract—or QLAC.
QLACs are exempt from RMD rules. With a QLAC, you can defer receiving income payments until age 85. By deferring payments, you may be able to avoid getting bumped into a higher tax bracket, and in turn, you could lower your Medicare premiums. This strategy can be especially effective if you end up working beyond age 73.
The IRS offers a RMD worksheet with formulas to help determine RMDs at specific ages. According to the worksheet, you take your retirement account balance as of Dec. 31 of the previous year and divide it by the distribution period associated with your age on your birthday in the current year.
There are several QLAC annuities offered from different carriers, and we can do the research to find the one that fits best for each client. These are simple annuities that clients love, because they get to put off paying taxes on some of their IRA funds for several more years!
Give us a call and we can talk through these simple strategies and help make the sale easy and quick.
951-452-7338
800‐200‐9194, ext. 206
~ John Roberts
Marketing Director
VP, TWH Agency, Inc.
John Roberts
John is the TWH Agency Marketing Director. With over three decades experience as a Life and Health Agent/Broker, John is uniquely qualified to assist brokers and agencies in promoting their business.
