A Tax-Friendly Way to Get Income for Life
by Kimberly Lankford, Contributing Editor, Kiplinger's Personal Finance
Jul 11, 2018
1 minute
[Question]
I heard that you can use $130,000 in an IRA to buy a deferred-income annuity without having to pay taxes on the money. Have you come across this before?
[Answer]That sounds like a Qualified Longevity Annuity Contract, or (or 25% of the IRA balance, whichever is less) in this special kind of deferred-income annuity. You're not taxed on the move, and the money you put into the is not included when calculating your from the IRA after you reach age 70½.
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