Well, the IRS changed the rules and AIG responded. In fact, it appears to have been first out of the gate.
AIG’s American General Life Insurance Co. has now jumped in with its American Pathway Deferred Income Annuity, which it noted in a product bulletin “is now eligible to be designated as a QLAC when purchased as a traditional IRA.”
While the new rules allow QLACs to be offered in DC plans, the first to come out were expected be those for IRAs.
QLACs are deferred income annuities that don’t begin to make payments until considerably later in life than the standard annuities — say, age 80 or even 85.
NAFA has released a paper that helps advisors answer clients’ most important annuity questions.