Rhode Island
Longevity annuities in Rhode Island: Defer income to age 80-85, lower taxes today
Reduce RMDs • Lower current taxes • Guaranteed late-life income
1,892 retirees using QLACs to reduce RMDs and insure longevity this year
QLAC funds are excluded from RMD calculations. $200K QLAC can reduce annual RMDs by $7-10K.
If you live to 90+, QLAC payments provide guaranteed income when other assets may be depleted.
Income starts at 80-85 when you need it most. Delay = higher payout rates (200-300% return).
Why QLACs are different and who they help
RMDs at 73 force taxable withdrawals whether you need income or not. Large IRAs mean large RMDs, pushing you into higher tax brackets. A $2M IRA requires ~$75K+ annual RMDs at 73 - potentially unwanted taxable income.
Move up to $200K into a QLAC. That $200K is excluded from RMD calculations forever. Your RMD is calculated on $1.8M instead of $2M - saving $7-10K in annual RMDs and thousands in taxes.
If you live to 90+, you may outlive your portfolio. QLACs guarantee income starting at 80-85 when you need it most. It's insurance against living "too long" - peace of mind for late-life expenses.
Because income starts at 80-85, payout rates are massive. $100K at age 70 → $3,000+/month at age 85. That's 36% annual return if you live to 90. No other guaranteed product offers this.
$100,000 QLAC purchased at various ages, income starting at 85
| Purchase Age | Premium | Monthly at 85 | Annual Income |
|---|---|---|---|
| 65 | $100,000 | $2,800 | $33,600 |
| 68 | $100,000 | $3,100 | $37,200 |
| 70 | $100,000 | $3,400 | $40,800 |
| 72 | $100,000 | $3,750 | $45,000 |
See how much you can save in taxes while securing late-life income