Reduce your Required Minimum Distributions with a Qualified Longevity Annuity Contract
You can invest up to 25% , up to $125, 000, of your Solo 401(k) account balance in an annuity called a qualified longevity annuity contract. Funds in a Qualified Longevity Annuity Contract are disregarded for Required Minimum Distribution purposes. A Qualified Longevity Annuity Contract is a deferred-income annuity that begins payments some years after your investment. Check this--- a 70-year-old woman who invests $125,000 in a Qualified Longevity Annuity Contract will get an estimated $23,750 per year starting at age 80, or $46,500 per year if payments start at age 85 . That will reduce the Required Minimum Distribution at age 71 by an estimated more than $4,750.
Solo 401k Plan: Your Opportunity for Checkbook Control of Your Future
