Lesson 5 of 14 · Part 6 of 10

Put an income annuity next to the rider

A SPIA (single premium immediate annuity) or DIA (deferred income annuity) turns a lump sum into a paycheck. Usually there is no way back. Quote one beside the rider.

Do it in Genius

SPIA calculator Premium & Income Income Start Date Make it a QLAC Get quotes

Practice Client, 3 Nov 2026: a deferred IRA income (QLAC) from age 75 pays $2,270.01 a month. Breakeven Age is 80.

Rates change every day, so yours will differ.

Open SPIA calculator in Genius

In the app: Calculators → SPIA calculator

The income annuity quote for a QLAC: monthly income, payout rate, breakeven age and the quoted carriers.

1.

Open SPIA calculator. Under Annuitants, pick the lives and check the Date of Birth. Under Premium & Income, type the premium.

A quote needs a birth date. For the Practice Client it filled in 10/30/1960: check it with the client.
2.

Set Source of Funds. Under Income Start Date, pick Immediate or Deferred, and set the age to the rider's start.

Deferred starts at 75 until you change it. Within 12 months it is a SPIA, later a DIA. Qualified means IRA or 401(k) money. The tax part explains it.
3.

With Deferred and Traditional IRA or other qualified money, tick Make it a QLAC. Roth IRA and non-qualified money can't be a QLAC.

QLAC

Deferred income bought with qualified money. If it meets QLAC rules, its value is excluded from the required-withdrawal balance until income starts. The 2026 premium limit is $210,000 per person.

Her required withdrawals start at 75, so a QLAC starting at 75 defers nothing. Its value stays out of that balance only until income starts: quote a later age, up to 85.

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4.

Pick a Payout Option: what happens if the client dies early. Click Get quotes. Put the top income beside the rider's $1,318 a month.

Life Only

Payments stop at death. Nothing goes to the family. The highest income.

Life with Refund

If the client dies early, the unpaid part of the premium goes to the beneficiaries.

Life with Period Certain

Payments last at least the years you set, even if the client dies.

Like with like: set the age to 68, the rider's start, and untick Make it a QLAC for a DIA. The rider's $1,318 is the calculator figure: confirm it in the illustration. The rider lets 10% a year out free, and a life-only income annuity has no account.

You're done when you have a SPIA or DIA income for the same client and start age. I did this

Watch out: A SPIA is usually irrevocable, especially once payments start. The owner ordinarily cannot recover the premium or change the payout, barring narrow contract rights. A QLAC is excluded from the required-withdrawal balance only if it meets every QLAC rule, such as the premium limit. It generally must start by the first day of the month after age 85. Don't promise its income covers other accounts' required withdrawals.

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