Part 3 of 3
Compare a qualified longevity annuity with an income rider
A deferred income annuity (DIA) pays its first check over 13 months after purchase. A QLAC (qualified longevity annuity contract) is a DIA with tax rules for retirement money.
-
1.
Open a new chat. In ChatGPT Work, type @ and pick Annuities Genius first. Paste this.
Using Annuities Genius: my client is a single woman in Florida, born 1956-03-10 (70). She has $500,000 in a Traditional IRA. She wants $150,000 of it in a QLAC with cash refund, with income starting at 80.
Use the name "Client FL". Show me 3 QLAC options and the monthly income each pays from 80. Quote them with the premium returned if she dies before 80, and without. Show what the return costs in monthly income. Then compare the first QLAC with an income-rider annuity using the same $150,000 and an age-80 start. Show each option's RMD treatment from ages 73 through 79. Say whether those withdrawals reduce the rider guarantee. Verify the result under current IRS and contract rules. Tell me what each leaves her beneficiaries if she dies at 79, at 82 and at 85. For the rider annuity, run an illustration to get it. Mark every figure you worked out yourself. I decide.
Date every figure. If you cannot reach Annuities Genius, say so and give no figure.
Select the text and copy it.
Money outside a retirement account? Ask for a deferred income annuity (DIA) with a first payment date instead.
-
2.
Read the 3 options twice: premium returned, then not. The drop in income is the price.
If two price the same either way, ask your AI why. Then check the brochure.
-
3.
Read the rider and what each leaves her beneficiaries at three ages.
Option figures are your AI's own arithmetic. Rider figures come from an illustration. Ask for both kinds of illustration numbers: what the contract promises, and a what-if.
-
4.
Check the dollar limit and the start-date rule at irs.gov. Online figures may be old.
Income must start by the first day of the month after the 85th birthday.