MetLife Introduces QLAC for Qualified Individual Retirement Accounts
July 20 2015 - 8:00AM
Business Wire
MetLife announced today its Guaranteed Income Builder℠ deferred
income annuity is now available as a qualifying longevity annuity
contract (QLAC) for individual clients. Guaranteed Income Builder
provides a pension-like stream of income for life, helping to
address a top concern of today’s retirees: running out of money in
retirement. By using Guaranteed Income Builder as a QLAC, clients
now have the flexibility to defer a portion of their required
minimum distributions (RMDs) from their qualified IRA to a later
date.
“In 2016, the first of the retired Baby Boomers are set to begin
taking their RMDs,” said Elizabeth Forget, executive vice president
of MetLife Retail Retirement & Wealth Solutions. “Even though
RMD rules require that individuals begin taking distributions from
IRAs once they reach age 70½, not everyone will need these funds at
that stage in their life. In fact, many Boomers will increase their
taxable income when taking RMDs at age 70½, because they are
required to take these funds or face a penaltyi. By using
Guaranteed Income Builder as a QLAC, clients can defer income
payments until their chosen start date, which can be as late as age
85.”
When a client purchases Guaranteed Income Builder as a QLAC, the
portion of their IRA balance that they used to buy it is excluded
from the funds used to calculate the RMDs they are required to take
beginning at age 70½. Clients can then begin income payments at a
chosen start date, which can be as late as age 85. The maximum
amount that can be used for a QLAC is the lesser of 25% of the
individual’s IRA balance or $125,000ii.
“At MetLife, we are committed to providing clients and financial
advisors with flexible products that can be tailored to help meet
clients’ individual financial goals,” said Forget. “By allowing
clients to defer payments from their IRAs, Guaranteed Income
Builder as a QLAC gives them a significant level of flexibility to
manage both their assets and tax obligations—further enhancing
their ability to retire with confidence.”
MetLife offers a broad portfolio of retirement solutions
designed to meet clients’ diverse retirement planning needs.
Today’s announcement that Guaranteed Income Builder is now
available as a QLAC follows the launch of the company’s Retirement
Income Insurance® QLAC product for the institutional market on May
27.
For more information, please visit
http://metlife.com/income.
About MetLife
MetLife, Inc. (NYSE:MET), through its subsidiaries and
affiliates (“MetLife”), is one of the largest life insurance
companies in the world. Founded in 1868, MetLife is a global
provider of life insurance, annuities, employee benefits and asset
management. Serving approximately 100 million customers, MetLife
has operations in nearly 50 countries and holds leading market
positions in the United States, Japan, Latin America, Asia, Europe
and the Middle East. For more information, visit
www.metlife.com.
The MetLife Guaranteed Income Builder is issued by MetLife
Insurance Company USA ("MetLife") on Policy Form 6-1001-1 (05/14);
11225 North Community House Road, Charlotte, NC 28277. Product
features and availability may vary by state.
i Any discussion of taxes is for general informational purposes
only and does not purport to be complete or cover every situation.
MetLife, its agents and representatives may not give legal, tax or
accounting advice and this document should not be construed as
such. You should confer with your qualified legal, tax and
accounting advisors as appropriate ii The sum of all Purchase
Payments to a qualifying longevity annuity contract (QLAC) may not
exceed the lesser of (i) $125,000, less the sum of all premiums
previously made to other QLACs, and (ii) 25% of the aggregate of
the previous year end fair market values of all IRAs (including
QLAC IRAs, but excluding Roth IRAs), less premiums previously paid
to other QLAC IRAs, or as otherwise prescribed by guidance from the
Secretary of the Treasury.
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version on businesswire.com: http://www.businesswire.com/news/home/20150720005117/en/
MetLife, Inc.Al Killeffer,
980-949-3301akilleffer@metlife.com
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