Qualifying Longevity Annuity Contract. (QLAC). The terms of a By January 31 of each year, you will receive a report of your fair QLAC you hold in this IRA may or may not provide a death benefit. market value as of the previous calendar year end. If applicable, you will The QLAC may permit death benefits in the form of a life annuity also receive a report concerning your annual RMD. or a return of premiums. If your QLAC has a return of premium Federal Tax Penalties and IRS Form 5329. Several tax penalties may feature as a death benefit, the premium returned to your beneficiary apply to your various IRA transactions, and are in addition to any federal, is the RMD amount if your death occurs after the RBD. The return state, or local taxes. Federal penalties and excise taxes are generally of premium amount is the difference between the premiums paid for reported and remitted to the IRS by completing IRS Form 5329, the QLAC and the amounts paid to you. The return of premium Additional Taxes on Qualified Plans (Including IRAs) and Other amount must be distributed to the beneficiary by the end of the Tax-Favored Accounts, and attaching the form to your federal income tax calendar year following the year of death. If your death occurs return. The penalties may include any of the following taxes:
Appears in 4 contracts
Samples: Customer Agreement, Customer Agreement, Customer Agreement
