Pacific Life Offers IRA Owners a New Way to Manage RMDs
Treasury Regulations Open the Door for Product Innovation to Create Greater Lifetime Income
(firmenpresse) - NEWPORT BEACH, CA -- (Marketwired) -- 04/06/15 -- Pacific Life Insurance Company has launched a new solution for IRA owners who are looking to save on taxes earlier in retirement and would like to increase their guaranteed lifetime income payments at a later time.
The solution is called a qualified longevity annuity contract (QLAC) and was made possible by U.S. Treasury regulations released in July 2014. The regulations enable an investor to allocate a portion of his or her IRA to a deferred income annuity (DIA) that meets specific QLAC criteria. Income from the annuity need not start until age 85. Meanwhile, the DIA amount will not be included when calculating the investor's required minimum distributions (RMDs) -- the amount that must be withdrawn from IRAs each year beginning at age 70 1/2. As a result, RMDs are lower, providing a new tax-management opportunity for the investor.
"It can be a source of frustration for clients who would prefer the option to take a smaller distribution, because they may not need to take as much income as required early in retirement," says Christine Tucker, vice president of marketing for Pacific Life's Retirement Solutions Division. "Greater required minimum distribution amounts may bump retirees into a higher tax bracket. It can also affect the percentage of Social Security benefits exposed to taxation. For some, it may even increase the premiums they pay for Medicare Part B and D. This is why Pacific Life's Pacific Secure Income(SM) as a QLAC may make sense for certain clients."
Pacific Life is an early entrant in the QLAC market. To assist advisors, Pacific Life offers unique educational resources through its Retirement Strategies Group and Advanced Marketing Group. These home-office and field specialists can help financial professionals examine the application of QLACs in a variety of financial strategies.
"The new QLAC Treasury regulations have been called a 'game changer' for retirement income planning," says Tucker. "Our main focus has always been to help financial advisors build strong relationships with clients and put innovative solutions in their hands. The QLAC-specific version of Pacific Secure Income is another way in which we're accomplishing that."
For more information on Pacific Secure Income and QLACs, visit . Financial professionals are also invited to call a Pacific Life consultative wholesaler at (800) 722-2333.
Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit .
Client count as of June 2014 is compiled by Pacific Life using the 2014 FORTUNE 500® list.
Pacific Secure Income can be used as a qualified longevity annuity contract (QLAC), subject to state and firm availability. In order for the contract to be eligible as a QLAC, certain requirements under Treasury Regulations must be met, including limits on the total amount of purchase payments that can be made to the contract. Compliance with the QLAC purchase payments limit is the owner's responsibility, and failure to adhere may result in the contract no longer being considered a QLAC, and would subject the value of the QLAC to required minimum distribution requirements that may not be accessible through the contract. In addition, there are restrictions on annuity payout options that can be elected under a QLAC contract, and the commutation, payment acceleration, and inflation protection features are not available. Changes to marital status may require a change to the annuity payout option and/or payments in order to maintain the QLAC status.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Insurance product and rider guarantees, including optional benefits and any fixed crediting rates or annuity payout rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. They are not backed by the independent third party from which this annuity is purchased, including the broker/dealer, by the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.
Fixed annuities issued by Pacific Life (Newport Beach, CA) are available through licensed, independent third parties.
June Arce
Pacific Life
Phone: (949) 219-6916
E-Mail:
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Datum: 06.04.2015 - 18:39 Uhr
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