A QLAC for IRAs is not a “Medicaid Annuity.”
This year, the IRS adopted final regulations which allow an IRA or 401K account holder to direct 25% of the qualified funds into a new structure called a Qualified Longevity Annuity Contract (QLAC). This is a deferred-income annuity contract purchased from an insurance company with qualified funds. The portion of qualified assets used to purchase the QLAC will not be subject to the Required...