Deferred Income Annuities Steady Predictable Payments
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Questions about an existing annuity?
As we live longer, the need to generate income later in life to cover expenses that may increase with age, like healthcare, can be a challenge. With a QLAC, you shift the risk of outliving your income to the insurer, who promises to pay you a certain amount of income for the rest of your life. The insurer also assumes your interest and market risk; even if the market and interest rates go down significantly during your deferral period, you still get the same guaranteed income stream.
Also, it is important to understand that the IRS has limits on how much money can be invested in QLACs, and you are ultimately responsible for ensuring that you meet applicable rules and limitations. And like RMDs, there are substantial penalties for failing to follow the limits outlined below.
The premium amount is subject to two limitations: Total sum of QLAC premiums cannot exceed $145,0006 regardless of funding source; and QLAC premiums from a given funding source cannot exceed 25% of that funding source’s value6
Get a ballpark figure for your monthly income with a deferred income annuity.
This Fidelity Viewpoints article, explains how deferred annuities work and the role they play in a retirement income plan.
This video explains how guaranteed income annuities can help you cover essential expenses in retirement.
This Fidelity Viewpoints article explains how to use Qualified Longevity Annuity Contracts (QLACs) to create lifetime income later in life. h2 Get in touch Contact us to get help and answers. Open an annuity 866-450-3909 Questions about an
existing annuity? 800-634-9361 Deferred Income Annuity contracts are irrevocable, have no cash surrender value and no withdrawals are permitted prior to the income start date. * Annuity guarantees are subject to the claims-paying ability of the issuing insurance company. 1. Fixed annuities available at Fidelity are issued by third-party insurance companies, which are not affiliated with any Fidelity Investments company. These products are distributed by Fidelity Insurance Agency, Inc., and, for certain products, by Fidelity Brokerage Services, Member NYSE, . A contract’s financial guarantees are solely the responsibility of and are subject to the claims-paying ability of the issuing insurance company. 2. Restrictions may apply depending on payment option and/or contract type selected. The new income amount will be determined by the issuing insurance company. Please refer to the product materials for additional details. 3. Minimum subsequent premium amounts and limitations to when additional payments are allowed prior to income start date may apply. Please refer to the product fact sheet. 4. Required Minimum Distributions begin at age 72 for individuals who turn 70½ on or after January 1, 2020. 5. Traditional IRA includes SEP and SIMPLE IRA. QLACs cannot be purchased with Roth or Inherited IRA dollars. 6. QLACs cannot be purchased with Roth or Inherited IRA dollars; the value of such IRAs cannot be included in determining the 25% premium limit. The total sum of QLAC premiums cannot exceed $145,000, regardless of the funding source. If the funding source is a traditional IRA, the 25% limit is calculated by combining the total value of all traditional IRAs as of December 31 of the previous year. If the funding source is an employer-sponsored qualified plan [401(k), 403(b), or governmental 457(b)], the 25% limit is calculated based on the individual plan's account value on the previous day's market close. If you previously purchased a QLAC, the calculation of your 25% limit is more complicated. Please contact an attorney or tax professional for additional details. Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation. 618565.20.0
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Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
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Mutual Funds and Mutual Fund Investing - Fidelity Investments
Clicking a link will open a new window.h1 Deferred income annuities
Available through The Fidelity Insurance Network,1 deferred income annuities provide you, or you and your spouse, with guaranteed income for the rest of your life or a set period of time, starting on a date you select.2h2 Get in touch
Open an annuity866-450-3909
Questions about an existing annuity?
800-634-9361
GoGuaranteed income
An income stream for life or a set period of time for you or you and a spouse.Personalization
Flexibility to change the income start date one time2 or increase your future income stream by making additional investments to your annuity during the deferral period.3Stability
Steady, predictable payments provide security, regardless of market fluctuations.Minimum investment
Annuity choices
Choose from annuities available through The Fidelity Insurance Network that are simple and easy to compare.Key features
Optional features include beneficiary protection or a cost of living adjustment to help keep pace with inflation. Invest with a lump sum or incrementally over time with the add pay feature.What is a Qualified Longevity Annuity Contract QLAC
A QLAC is a deferred income annuity that allows you to invest a portion of your retirement portfolio and begin taking income beyond age 72 without conflicting RMD Rules.4 QLACs provide you with flexibility to defer the income start date until age 85.As we live longer, the need to generate income later in life to cover expenses that may increase with age, like healthcare, can be a challenge. With a QLAC, you shift the risk of outliving your income to the insurer, who promises to pay you a certain amount of income for the rest of your life. The insurer also assumes your interest and market risk; even if the market and interest rates go down significantly during your deferral period, you still get the same guaranteed income stream.
Funding Sources and Premium Limit
A QLAC is a DIA that can be funded only with assets from a traditional IRA5 or an eligible employer-sponsored qualified plan such as a 401(k), 403(b), or governmental 457(b).Also, it is important to understand that the IRS has limits on how much money can be invested in QLACs, and you are ultimately responsible for ensuring that you meet applicable rules and limitations. And like RMDs, there are substantial penalties for failing to follow the limits outlined below.
The premium amount is subject to two limitations: Total sum of QLAC premiums cannot exceed $145,0006 regardless of funding source; and QLAC premiums from a given funding source cannot exceed 25% of that funding source’s value6
Get a ballpark figure for your monthly income with a deferred income annuity.
Learn more
These articles and videos explain some of the investment and retirement challenges that annuities may help you meet.This Fidelity Viewpoints article, explains how deferred annuities work and the role they play in a retirement income plan.
This video explains how guaranteed income annuities can help you cover essential expenses in retirement.
This Fidelity Viewpoints article explains how to use Qualified Longevity Annuity Contracts (QLACs) to create lifetime income later in life. h2 Get in touch Contact us to get help and answers. Open an annuity 866-450-3909 Questions about an
existing annuity? 800-634-9361 Deferred Income Annuity contracts are irrevocable, have no cash surrender value and no withdrawals are permitted prior to the income start date. * Annuity guarantees are subject to the claims-paying ability of the issuing insurance company. 1. Fixed annuities available at Fidelity are issued by third-party insurance companies, which are not affiliated with any Fidelity Investments company. These products are distributed by Fidelity Insurance Agency, Inc., and, for certain products, by Fidelity Brokerage Services, Member NYSE, . A contract’s financial guarantees are solely the responsibility of and are subject to the claims-paying ability of the issuing insurance company. 2. Restrictions may apply depending on payment option and/or contract type selected. The new income amount will be determined by the issuing insurance company. Please refer to the product materials for additional details. 3. Minimum subsequent premium amounts and limitations to when additional payments are allowed prior to income start date may apply. Please refer to the product fact sheet. 4. Required Minimum Distributions begin at age 72 for individuals who turn 70½ on or after January 1, 2020. 5. Traditional IRA includes SEP and SIMPLE IRA. QLACs cannot be purchased with Roth or Inherited IRA dollars. 6. QLACs cannot be purchased with Roth or Inherited IRA dollars; the value of such IRAs cannot be included in determining the 25% premium limit. The total sum of QLAC premiums cannot exceed $145,000, regardless of the funding source. If the funding source is a traditional IRA, the 25% limit is calculated by combining the total value of all traditional IRAs as of December 31 of the previous year. If the funding source is an employer-sponsored qualified plan [401(k), 403(b), or governmental 457(b)], the 25% limit is calculated based on the individual plan's account value on the previous day's market close. If you previously purchased a QLAC, the calculation of your 25% limit is more complicated. Please contact an attorney or tax professional for additional details. Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation. 618565.20.0
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Already have a dedicated Fidelity advisor?
Call 800-345-1388
Have us contact you Important Information Virtual Assistant is Fidelity’s automated natural language search engine to help you find information on the Fidelity.com site. As with any search engine, we ask that you not input personal or account information. Information that you input is not stored or reviewed for any purpose other than to provide search results. Responses provided by the virtual assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. Fidelity does not guarantee accuracy of results or suitability of information provided. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
796549.1.0