So I am somewhat familiar with qualified longevity annuity contract (QLAC), but by no means an expert on them. You transfer funds from a retirement account, up to $200K, in a lump sum or periodically to a QLAC. Because the transfer is from one plan custodian to another, it’s tax-free. IRS rules stipulate that required minimum distributions begin at age 85 from the QLAC. So it is a good tool to delay RMD
One of the the downsides of annuities are the costs, both upfront and over the life of the contract, which may be why your advisor did not provide you with much information. Another downside is since it is an annuity you are no longer in control of the principal, so they are not flexible instruments. With any annuity you should shop for the best deal.
I do hope this was helpful @pgiguer
All the best,
Marc T.
TurboTax Live Tax Expert
27 Years of Experience Helping Clients
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