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CPS Impact Annuities

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QLACs – Avoiding Taxes For A Little Longer

Using someone else’s money costs money. It’s called paying interest on a loan. But it’s especially irksome when you have to pay someone to use your own money. It’s called income taxation.
 
But sometimes the government at least allows you to defer the levy on taxable income. The most common occasion is when money is saved in qualified retirement plans.
 
Consider the power and efficiency:
  • There is no current taxation on either contributions or earnings…
  • Allowing for maximum compounding of the account balance…
  • With the possibility that taxation may ultimately occur in lower brackets.
But the deferral period ends when taxpayers reach (in most cases) age 73 and must begin taking required minimum distributions (RMDs) from their plan.
 
But what if a client doesn’t need the RMDs and would like to extend the tax deferral period?
 
Since 2014 the government has allowed for the extended deferral of both the taxation and required distributions of up to (currently) $210,000 of your client’s qualified accounts until as late as age 85 by repositioning the funds in a qualified longevity annuity contract (QLAC)!
 
We will help you and your client:
  • Determine how long to extend deferral estimating the tax impact on the larger distributions required at a later age.
  • Determine how much should be deferred based on current or eventual need for RMDs.
  • Structure deferral advantageously if RMDs have already begun.
  • Design a proper death benefit option in the QLAC if your client dies prior to distributions.
  • Select the right product to meet the QLAC goals chosen, as product design and flexibility vary greatly from carrier to carrier!
Call now concerning your clients interested in greater tax deferral.
 
For What It’s Worth: Albert Einstein supposedly said, “The most powerful force in the Universe is compound interest.” Regarding the reliability of that attribution consider that the often-quoted Yankee-great, Yogi Berra, commented, “I really didn’t say everything I said.”
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Unmatched Guaranteed Income For Life from An A++ Carrier

For advisors focused on improving retirement success rates, FIAs with income riders can be one of the most efficient ways to create dependable lifetime income. They help clients cover essential expenses with protected income they can count on, without direct market risk, mortality and expense charges, or underlying fund fees.
 
The key to evaluating FIA income riders is not just the rollup rate.
 
It is the combination of the rollup rate during deferral and the payout rate when income begins. The rollup rate builds the benefit base. The payout rate converts that benefit base into annual lifetime income. Together, they drive the final income number your client will receive.
 
That is why income efficiency matters so much.
 
A rider can look attractive on paper because of a high rollup rate, but if the payout rate is average, the final income may fall short. The strongest FIA income riders pair competitive growth during the deferral years with strong payout percentages at the age income is actually turned on.
 
For clients in their late 60s planning to start income in their early to mid 70s, one of our A++ carriers stands out with a 9% simple-interest rollup credit during the rollup period, and current payout schedules reach the mid-8% range for many relevant income-start scenarios. That combination can push guaranteed income levels to the top of the FIA rider competition for this planning window.
 

For advisors, the value is clear: no direct market downside exposure inside the FIA, no M&E charges, no fund fees, and a high level of guaranteed lifetime income clients can depend on.

 
When you combine protection, simplicity, and top-tier income potential, FIA income riders can become a powerful tool for helping clients build a more durable retirement plan and protect clients from sequence of return risk.
 
In the end, the best retirement income strategies are not just about accumulation. They are about turning assets into reliable income with confidence. For advisors looking to improve client outcomes, an efficient FIA income rider can help deliver exactly that. Contact us for your next income planning case. Together we can show you how these vehicles can better probabilities for retirement success.
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Winning In Overtime With Unneeded Life Policies

“I went to a fight the other night and a hockey game broke out!” The famous one-liner by the late comedian Rodney Dangerfield finds it humorous foundation in the reality that those athletes on skates are resourceful in finding occasion for fist-a-cuffs.
 
But the sport offers a life lesson in making the best of a bad situation. If a team wins a game in regulation it is awarded two points in the standings and the loser gets nothing. But if a game is tied even the team that loses in overtime or a “shootout,” gets one point.

As an insurance advisor don’t miss the opportunity to make the “loss” a client may have in an unneeded policy into a positive transaction.

Example: Your client has a life policy into which he or she has paid $50,000 in premium and has a surrender value of only $10,000. The policy requires too much to maintain or is no longer needed.
 
But rather than tossing in the towel, suggest using the policy loss to earn some tax-free money! Consider:
  • Swap the policy for an annuity in a 1035 exchange.
  • Section 1035 allows for transfer of both the cash value ($10,000) and the old policy tax basis ($50,000) into the new contract.
  • Account values in annuities are taxed only to the extent of gain in the contract, the exchanged-for annuity allows room for $40,000 in growth before there is any potential income taxation on full surrender.
  • Additional premium can be contributed at the time of the exchange allowing for quicker loss recovery (e.g., $20,000 new premium results in an initial policy value of $30,000 and initial tax basis of $70,000 – loss in the policy is not affected!).
A 1035 exchange to an annuity is not without its hoops and details, so contact Tom Virkler, JD – Director of Advanced Markets, at tom@cpsadvancedmarkets.com or 706-614-3796 concerning these and any opportunities for increasing your annuity business.
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Your Clients Will Want To Know About This Tax Benefit!

A Guide to Qualified Longevity Annuity Contracts and Their Retirement Benefits

As retirement planning becomes increasingly complex, Qualified Longevity Annuity Contracts (QLACs) are emerging as powerful tools for securing income in later retirement years. Before your clients begin taking Required Minimum Distributions (RMDs) from their retirement accounts, it’s essential to understand how QLACs can help them optimize their retirement income and tax strategy.

What Is a QLAC?

A QLAC is a type of deferred income annuity that you purchase using funds from your traditional IRA or qualified retirement plan. The unique feature of a QLAC is that it allows your clients to defer receiving distributions—and thus paying taxes on them—until as late as age 85. This means clients can use a portion of their retirement savings (up to $210,000 for 2026) to create a guaranteed stream of income later in life while delaying some RMDs.

Key Benefits of QLACs
  • Tax Deferral: By transferring a portion of an IRA or 401(k) into a QLAC, those funds are excluded from RMD calculations until payouts begin. This can reduce your client’s taxable income during early retirement years.
  • Lifespan Protection: QLACs provide guaranteed income for life starting at the age you choose (up to 85), helping protect against outliving assets—a significant concern for many retirees.
  • Flexibility and Control: You can select how much to invest in a QLAC (up to IRS limits), and when payments start, giving you control over your income timeline.
  • Simplified Planning: Knowing you’ll have a secure income stream later in life can make it easier to budget for early retirement and manage other investments.
Why Delay RMDs Until You Consider a QLAC?

Once you start taking RMDs, the opportunity to fund a QLAC with pre-tax retirement assets diminishes. Taking time to evaluate whether a QLAC aligns with your clients’ goals can help them avoid unnecessary taxes and preserve long-term financial security.

In summary, QLACs offer valuable tax-deferral benefits, guaranteed income for longevity, and greater flexibility in retirement planning. Don’t rush into taking RMDs—explore your clients’ options with QLACs to maximize their retirement peace of mind.

Contact your Annuity Consultant today to learn about this powerful planning opportunity.

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In A Falling Annuity Rate Environment, Now Is The Time To Act

After the Fed Cut, securing today’s annuity rates is essential. The Fed’s recent 25 bps cut is a clear signal that the high-rate window is tightening.

We don’t know when we’ll see rates at these levels again, which makes acting now especially important.

Lock In Today’s MYGA Rates

We are still seeing MYGA rates above 5.8%, but these will adjust as carriers reprice. MYGAs allow clients to:

  • Lock in current multi-year guaranteed rates
  • Protect against future reductions
  • Maintain steady, predictable returns

Securing these rates now preserves today’s stronger guarantees.

FIAs for Protection With Upside Potential

Several carriers currently offer S&P cap rates over 10%, creating strong crediting opportunities while maintaining full protection from market losses. FIAs provide:

  • Downside protection
  • Index-based growth potential
  • Long-term accumulation and income options
Why Act Now

With rates moving lower, clients need solutions that offer certainty and protection. MYGAs lock in today’s rates; FIAs safeguard principal while offering controlled upside potential.

Contact an annuity consultant today to secure security and growth for your clients.

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Highest Cap in the Industry, A++ Carrier, Strong Renewal Rate History

MassMutual Ascend recently released the renewal rate history on its flagship American Legend 7 Fixed Indexed Annuity (FIA)—and the numbers speak for themselves. The product currently offers a 10.5% S&P 500 cap, tied for the highest among A- or better rated carriers, and is backed by an A++ (Superior) financial strength rating.

What truly sets the Legend 7 apart is its renewal rate history—especially on the S&P 500 cap.

Many FIAs advertise attractive first-year caps only to reduce them sharply in later years. This can erode long-term growth potential and client confidence. By contrast, MassMutual Ascend has demonstrated one of the strongest renewal track records in the industry, keeping renewal caps close to initial levels year after year.

This matters because the S&P 500 cap is often the core growth driver inside an FIA. When caps are maintained at competitive levels, clients see more consistent crediting opportunities over time. Advisers can position this as not just a short-term product, but a reliable long-term accumulation vehicle.

For clients, the Legend 7 offers:
  1. Competitive Growth – A 10.5% S&P 500 cap, among the best available
  2. Principal Protection – Zero downside risk from market losses
  3. Renewal Strength – A proven history of cap consistency, reducing the risk of “bait and switch” disappointment
  4. Carrier Confidence – Backed by MassMutual Ascend’s A++ financial strength

In today’s environment, where rates are high but stability is uncertain, the Legend 7 FIA combines industry-leading upside potential with renewal consistency and rock-solid backing—making it one of the most compelling choices for advisers and their clients.

Call your annuity consultant today to see where this fits in your book.

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Before The Fed Cuts: Why Smart Advisors Are Locking In Annuities Today

As of late July 2025, the market is increasingly confident that the Federal Reserve will begin cutting interest rates—possibly more than once—before the end of the year. Inflation has cooled, the labor market is softening, and forward-looking indicators show a slowing economy. With the rate cut narrative gaining momentum, several major carriers—including New York Life and MassMutual—have already announced upcoming rate drops on their Multi-Year Guarantee Annuities (MYGAs).

For financial advisors, this is a clear signal: your window to lock in historically high annuity rates for your clients is rapidly closing.

Why This Matters Now
  • We’re Still Near 18-Year Highs. Across the board—MYGAs, Fixed Indexed Annuities (FIAs), Single Premium Immediate Annuities (SPIAs), and QLACs—contract rates and payout yields are among the highest we’ve seen since the mid-2000s. These elevated rates are directly tied to the Fed’s monetary policy. Once the rate cuts begin, product pricing will follow—and the generous income and accumulation opportunities available today will shrink.
  • Carriers Are Already Repricing. Advisors should not wait for the Fed’s official move. Insurance carriers are proactive, adjusting their pricing and rate sheets in anticipation. We’ve already seen downward movement from top-rated carriers, and it’s likely just the beginning. Waiting could mean offering your clients a lower rate, a smaller income base, or reduced caps and participation on indexed strategies.
  • Annuities as a Strategic Tool in Today’s Environment. For pre-retirees and retirees looking for safety, guaranteed income, or just a bond alternative in a traditional 60/40 portfolio, annuities are more competitive than they’ve been in decades
    • MYGAs offer predictable, tax-deferred growth—ideal for clients sidelined from market volatility.
    • FIAs provide growth potential tied to market indexes with no downside risk, and many still have caps and par rates that reflect the high-rate environment.
    • SPIAs and QLACs convert today’s high interest rates into guaranteed income for life, helping clients hedge longevity and sequence-of-return risk.
  • Rate Windows Don’t Stay Open Long. If you’re waiting for confirmation of rate cuts before taking action, you’re already behind. Advisors who act now can help clients secure lifetime income or growth before yields retreat—potentially for years to come. It’s worth remembering: the last time annuity rates were this competitive, we were still using flip phones.
Final Thoughts for Advisors

This is a rare moment where urgency and opportunity align. In a shifting rate environment, annuities are uniquely positioned to provide the certainty many clients are craving—and today’s rates give you a powerful story to tell.

If your clients are sitting on cash, under-earning in short-term treasuries, or unsure about staying in the market, now is the time to bring annuities into the conversation. You’ll be delivering long-term value while helping them take advantage of a fleeting window.

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A++ Carrier, Over 10% Cap On The S&P 500

Rare Opportunity: A++ Carrier Now Offering Over 10% S&P 500 Cap on Fixed Indexed Annuity

In today’s shifting economic landscape — where interest rate cuts are widely expected and tariff tensions are making headlines again — it’s rare to see a safe-money product offering double-digit growth potential. That’s exactly what makes Reliance Standard Life’s recent rate update so remarkable.

A subsidiary of the globally respected TokioMarine Group and rated A++ by AM Best, Reliance Standard has raised the cap on its Accumulator Fixed Indexed Annuity to 10.25% on the S&P 500 1-Year Point-to-Point strategy. That makes it one of the only A++ rated carriers currently offering a cap over 10%.

While the Accumulator offers 5-, 7-, and 10-year terms, the 10-year option stands out as the best way to lock in this historically high cap. In a time when many expect rates to decline and market volatility to rise, clients have a narrow window to capture long-term upside without taking on market risk.

Why Indexed Annuities?

Fixed Indexed Annuities (FIAs) offer a unique combination of benefits:

  1. Zero market risk – your clients can’t lose principal due to market downturns.
  2. Annual gain lock-ins – once gains are credited, they’re locked in and can never be lost.
  3. No fees – most FIAs, including the Accumulator, come with no annual fees.

This is more than just a strong rate — it’s a rare combination of high growth potential, financial strength, and long-term security. For clients looking to ride out economic uncertainty with confidence, the Accumulator 10-Year offers a compelling opportunity that may not last long.

Call our Annuities Team today to see where this fits in your book.

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Growth Without Guesswork: Why Advisors Are Turning to the American Legend 7 FIA

In an environment defined by market volatility, geopolitical uncertainty, and growing concerns about long-term equity returns, financial advisors are leaning into strategies that offer growth potential without exposing clients to downside risk.

One product leading that conversation is the MassMutual Ascend American Legend 7, a fixed indexed annuity (FIA) that combines flexibility, security, and performance in a single retirement planning tool.

Backed by MassMutual Ascend, an A++ rated insurer under the MassMutual umbrella, this annuity stands on exceptional financial footing.

MassMutual itself, founded in 1851, holds over $1 trillion of life insurance in force, ranks #102 on the Fortune 500, and has a long history of delivering on its promises. MassMutual Ascend has issued over $58 billion in annuity premium over the last decade and has been upgraded during crises—including both the 2008 financial meltdown and the COVID-19 pandemic.

The standout feature of the American Legend 7 is its 7-year S&P 500 point-to-point strategy with annual cap lock. In a recent 7-year back-test at an 8.5% cap, a $1 million premium grew to over $1.5 million, with no losses in negative years and all prior gains locked in. That means your clients never lose ground—even in a downturn.

The product also includes a 4.7% first-year fixed rate, plus diversified index options including real estate (iShares U.S. Real Estate ETF), gold (GLD), and a balanced income/equity index (First Trust Barclays Edge). Advisors can tailor allocations to match their client’s risk tolerance and goals.

With 10% annual penalty-free withdrawals, terminal illness access, RMD support, and an up-front 5% commission for clients under 76, the American Legend 7 is a smart addition to any advisor’s toolkit.

Reach out to explore where the American Legend 7 fits in your clients’ retirement strategies.

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Out With The Old: Why It’s Never Been Easier To Upgrade Underperforming Annuities

Many annuities sold in 2020 and 2021 were written during one of the lowest interest rate environments in modern history. At the time, those products may have offered the best available guarantees — but a lot has changed since then.

Today, we’re in a drastically different rate environment, with interest rates near 18-year highs.

That shift has created a rare opportunity for advisors and their clients:

The ability to replace underperforming in-force annuities with newer contracts offering significantly better guarantees and growth potential.

Even more compelling is the current wave of aggressive cash value bonuses — many exceeding 20% — offered by top-tier carriers. These bonuses don’t just improve the value of the contract on day one—they also offer a powerful solution to one of the biggest barriers to replacement: surrender charges.

Here’s how it works:

If a client has a contract that’s still in its surrender period, a high-value bonus can offset those charges, and in some cases even immediately increase the overall account value. This gives both the client and advisor the flexibility to reposition assets without waiting out a full surrender schedule — and the opportunity to secure stronger long-term accumulation potential starting today.

For clients in older contracts with lower caps, weak fixed rates, or limited index options, this is a chance to upgrade their annuity without penalty — and position them for greater success in retirement.

Send our Annuity Team any current annuity statements for a no-obligation review, or give us a call to discuss how today’s top bonus products can help you unlock more value for your clients.

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