Which of the following statements is (are)true with regard to a qualified longevity annuity contract (QLAC)?
I.A lump sum premium is paid to provide income at some future date.
II.A QLAC can be purchased to address the risk of exhausting retirement income from an employer-sponsored qualified retirement plan.

Question

Quizplus · Accepted Answer

I is true as a lump sum premium is paid for a QLAC, which provides income at a future date. II is also true, as a QLAC can be purchased to address the risk of running out of retirement income from an employer-sponsored qualified retirement plan. Therefore, both I and II are true statements regarding QLACs.

Which of the Following Statements Is (Are)true with Regard to a Qualified