By Rich Grassano of Boca Accounting
You may wish to consider another little used technique to reduce your Required Minimum Distributions (RMDs) which start from your IRA or pension plan at age 70 ½. Many of our clients are looking at reaching 90-100 years old and are concerned about running out of money later and being too highly taxed today.
The technique is called a QLAC (Qualified Longevity Annuity Contract) you can invest up to $130,000 from your existing IRA into this annuity which will guarantee lifetime income starting as late as 85-years-old without taking a taxable distribution now. This will also reduce your RMDs in the short term.
Boca Accounting works with your financial advisor to guide you through retirement and the unique problems and planning needed. So, give us a call to discuss this technique and other ideas you haven’t heard on the financial networks.
Boca Accounting LLC, CPAs
190 NW Spanish River Blvd
Boca Raton, FL 33431