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The Case for Longevity Annuities and QLACs

The Case for Longevity Annuities and QLACs

The Case for Longevity Annuities and QLACs

United States Tax Court Building
United States Tax Court Building

Many people in their early retirement years would like to know if they can afford to spend money on frequent trips or luxury vehicles without being concerned about running out of money in their old age. That is where longevity annuities or QLACs may be part of the answer. Longevity annuities are a type of deferred annuity that can be purchased today but will not start paying benefits until later in retirement, usually at age 80 to 85. QLACs or “qualified longevity annuity contracts” are longevity annuities purchased within a 401(k) or IRA account. Both types of annuities have tax benefits, but QLACs can reduce the taxable distributions that would otherwise kick in when a retiree reaches the age where they must take required minimum distributions (RMDs).

The passage of Secure Act 2.0 has expanded the maximum investment that can be placed in a QLAC to $200,000 and has eliminated prior percentage restrictions. Not every corporate retirement plan has the option to purchase a QLAC, but retirement money in a 401(k) plan can always be rolled over to an IRA account that allows this feature. QLACs, like other longevity annuities, are purchased from insurance companies that offer these products as an option within retirement plans. Potential investors should study the terms of the contracts and the stability of the companies as part of their retirement planning analysis.

Retirement planning presents a tradeoff between financial resources that can be prudently consumed today vs. resources saved for the future. While deferred annuities and QLACs are not designed to provide investment returns that will match the stock market, they can relieve the psychological concerns that retirees might have about outliving their money.

Fulcrum Wealth Advisors provides advice regarding whether longevity annuities or QLACs make sense as part of a retirement plan. For more information about longevity annuities or QLACs, please access the following websites.

https://www.journalofaccountancy.com/news/2023/may/longevity-annuities-why-clients-should-consider-them.html

https://www.annuityexpertadvice.com/secure-2-0-act/#:~:text=an%20elective%20deferral.-,Increase%20Qualified%20Longevity%20Annuity%20Contract%20(QLAC)%20Contributions,limit%20previously%20set%20in%20place.

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Investment advisor representative of securities and investment advisory services offered through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker/dealer, and Registered Investment Advisor. Cetera is under separate ownership from any other named entity. In addition, some Investment advisory services are offered through Fulcrum Wealth Advisors, LLC. Fulcrum Wealth Advisors, LLC is a registered investment advisor in the State of Washington.

Branch Address: 10940 NE 33rd PL., #210 Bellevue, WA 98004 Branch Phone: 877-400-0260

Fulcrum Wealth Advisors
10940 NE 33rd Pl.
Suite #210
Bellevue, WA 98004

(844) 621-0630
info@fulcrumwa.com

Fulcrum Wealth Advisors, LLC (“FWA”) is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration as an investment adviser does not imply a certain level of skill or training.

This website is provided for informational and educational purposes only and is intended to provide general information about FWA, its services, and investment-related topics. Nothing contained on this website constitutes investment advice, nor should it be construed as a recommendation, solicitation, or offer to buy or sell any security or investment product. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

Investment advisory services are provided only pursuant to a written investment advisory agreement entered into between FWA and its clients.

Jurisdictional Limitations: FWA provides investment advisory services only in jurisdictions where it is appropriately registered, exempt, or excluded from registration requirements. The information on this website is not directed to, or intended for use by, any person in any jurisdiction where such use would be contrary to applicable laws or regulations.

Any subsequent, direct communication by FWA with a prospective client shall be conducted by a representative who is either registered or qualifies for an exemption or exclusion in the jurisdiction where the prospective client resides.

No Personalized Advice: The information presented on this website is general in nature and does not take into account the individual financial circumstances, investment objectives, or risk tolerance of any specific person. Visitors to this website should not rely on any information herein as a substitute for personalized advice from FWA or from their own financial, tax, or legal professionals.

Testimonials, Endorsements & Third-Party Ratings: This website may include testimonials, endorsements, or third-party ratings. Such testimonials or endorsements are not representative of all clients, and no assurance is given that a current or prospective client will experience the same or similar results.

Where applicable, material conflicts of interest and whether compensation was provided in connection with a testimonial or endorsement are disclosed in accordance with applicable SEC regulations. Testimonials, endorsements, and ratings are not a guarantee of future performance or success.

Tax and Legal Disclaimer: FWA does not provide tax or legal advice. Information on this website should not be construed as tax or legal advice. You are encouraged to consult with qualified tax and legal professionals regarding your specific situation.

Third-Party Links: This website may contain links to third-party websites for convenience or informational purposes. We review the links when they are added and periodically thereafter and have a reasonable basis for believing they convey accurate information relevant to our clients. FWA does not control or assume responsibility for the content, ongoing accuracy, security, or privacy practices of any third-party websites. Accessing such links is at your own risk, and you are not required to link to any information we make available on our website.

© 2026 Fulcrum Wealth Advisors, LLC. All rights reserved.​

Website design: Radically Distinct

Fulcrum Wealth Advisors
10940 NE 33rd Pl.
Suite #210
Bellevue, WA 98004

(844) 621-0630
info@fulcrumwa.com

Fulcrum Wealth Advisors, LLC (“FWA”) is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration as an investment adviser does not imply a certain level of skill or training.

This website is provided for informational and educational purposes only and is intended to provide general information about FWA, its services, and investment-related topics. Nothing contained on this website constitutes investment advice, nor should it be construed as a recommendation, solicitation, or offer to buy or sell any security or investment product. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

Investment advisory services are provided only pursuant to a written investment advisory agreement entered into between FWA and its clients.

Jurisdictional Limitations: FWA provides investment advisory services only in jurisdictions where it is appropriately registered, exempt, or excluded from registration requirements. The information on this website is not directed to, or intended for use by, any person in any jurisdiction where such use would be contrary to applicable laws or regulations.

Any subsequent, direct communication by FWA with a prospective client shall be conducted by a representative who is either registered or qualifies for an exemption or exclusion in the jurisdiction where the prospective client resides.

No Personalized Advice: The information presented on this website is general in nature and does not take into account the individual financial circumstances, investment objectives, or risk tolerance of any specific person. Visitors to this website should not rely on any information herein as a substitute for personalized advice from FWA or from their own financial, tax, or legal professionals.

Testimonials, Endorsements & Third-Party Ratings: This website may include testimonials, endorsements, or third-party ratings. Such testimonials or endorsements are not representative of all clients, and no assurance is given that a current or prospective client will experience the same or similar results.

Where applicable, material conflicts of interest and whether compensation was provided in connection with a testimonial or endorsement are disclosed in accordance with applicable SEC regulations. Testimonials, endorsements, and ratings are not a guarantee of future performance or success.

Tax and Legal Disclaimer: FWA does not provide tax or legal advice. Information on this website should not be construed as tax or legal advice. You are encouraged to consult with qualified tax and legal professionals regarding your specific situation.

Third-Party Links: This website may contain links to third-party websites for convenience or informational purposes. We review the links when they are added and periodically thereafter and have a reasonable basis for believing they convey accurate information relevant to our clients. FWA does not control or assume responsibility for the content, ongoing accuracy, security, or privacy practices of any third-party websites. Accessing such links is at your own risk, and you are not required to link to any information we make available on our website.

© 2026 Fulcrum Wealth Advisors, LLC. All rights reserved.​

Website design: Radically Distinct

Fulcrum Wealth Advisors
10940 NE 33rd Pl.
Suite #210
Bellevue, WA 98004

(844) 621-0630
info@fulcrumwa.com

Fulcrum Wealth Advisors, LLC (“FWA”) is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration as an investment adviser does not imply a certain level of skill or training.

This website is provided for informational and educational purposes only and is intended to provide general information about FWA, its services, and investment-related topics. Nothing contained on this website constitutes investment advice, nor should it be construed as a recommendation, solicitation, or offer to buy or sell any security or investment product. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.

Investment advisory services are provided only pursuant to a written investment advisory agreement entered into between FWA and its clients.

Jurisdictional Limitations: FWA provides investment advisory services only in jurisdictions where it is appropriately registered, exempt, or excluded from registration requirements. The information on this website is not directed to, or intended for use by, any person in any jurisdiction where such use would be contrary to applicable laws or regulations.

Any subsequent, direct communication by FWA with a prospective client shall be conducted by a representative who is either registered or qualifies for an exemption or exclusion in the jurisdiction where the prospective client resides.

No Personalized Advice: The information presented on this website is general in nature and does not take into account the individual financial circumstances, investment objectives, or risk tolerance of any specific person. Visitors to this website should not rely on any information herein as a substitute for personalized advice from FWA or from their own financial, tax, or legal professionals.

Testimonials, Endorsements & Third-Party Ratings: This website may include testimonials, endorsements, or third-party ratings. Such testimonials or endorsements are not representative of all clients, and no assurance is given that a current or prospective client will experience the same or similar results.

Where applicable, material conflicts of interest and whether compensation was provided in connection with a testimonial or endorsement are disclosed in accordance with applicable SEC regulations. Testimonials, endorsements, and ratings are not a guarantee of future performance or success.

Tax and Legal Disclaimer: FWA does not provide tax or legal advice. Information on this website should not be construed as tax or legal advice. You are encouraged to consult with qualified tax and legal professionals regarding your specific situation.

Third-Party Links: This website may contain links to third-party websites for convenience or informational purposes. We review the links when they are added and periodically thereafter and have a reasonable basis for believing they convey accurate information relevant to our clients. FWA does not control or assume responsibility for the content, ongoing accuracy, security, or privacy practices of any third-party websites. Accessing such links is at your own risk, and you are not required to link to any information we make available on our website.

© 2026 Fulcrum Wealth Advisors, LLC. All rights reserved.​

Website design: Radically Distinct