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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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New Research Points To 3.7% As The Updated Safe Withdrawal Rate – But There’s A Smarter Way To Generate Retirement Income

Morningstar’s recent study suggests that the safe withdrawal rate for retirees has now shifted to 3.7%. For a 60-year-old with a $5 million portfolio, that translates to an annual withdrawal of $185,000 — offering a solid chance that the portfolio will last through retirement.

But is there a way to ease the burden on the income-producing portion of a retirement portfolio while preserving longevity? And what are the potential advantages of doing so?

Top advisors are turning to Fixed Indexed Annuity (FIA) income riders to help meet these goals.

More importantly, you don’t need to replace all income with annuities to reap the benefits. Even a partial allocation can have a major impact. For example, by allocating just 27% of the portfolio — $1,340,580 — toward a top-performing FIA income rider, clients can generate about half the income ($92,500 per year) they would from the entire $5 million portfolio. This portion is guaranteed for life, removing uncertainty around at least half of the retirement income.

Contrary to common misconceptions, this strategy can actually enhance liquidity in the overall portfolio.

While annuities are long-term vehicles and not known for liquidity, the reliable income they provide can allow other parts of the portfolio to remain more flexible.

Additionally, with a portion of income secured, clients may feel more comfortable taking on additional market risk in the rest of their portfolio — potentially capturing higher returns. Monte Carlo simulations support this strategy, showing improved outcomes when these guaranteed-income tools are included in the broader retirement plan.

Partner with us on your next income planning case.

We can help generate a personalized income portfolio report for your client, showcasing how FIAs with income riders offer one of the most efficient income-generating solutions available today.

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A++ Carrier Raises Rates on Flagship FIAs — With Powerful Cap Lock Guarantee

We’re always looking to bring our advisors and their clients access to top-tier annuity solutions that provide security, growth potential, and peace of mind. That’s why we’re excited to announce a significant rate increase from one of our premier carriers, MassMutual Ascend — a name synonymous with strength, backed by an A++ rating and a legacy dating back to 1851.

Rate Increases You Can Count On

Effective immediately, MassMutual Ascend is increasing the S&P 500 annual point-to-point cap on its two best-selling fixed-index annuities:

  • American Legend 7: Cap increased to 8.5%
  • American Landmark 5: Cap increased to 8.0%

These are strong caps in today’s fixed-index annuity landscape — but what truly sets these products apart is MassMutual Ascend’s unique “Cap Lock” guarantee.

What Is a Cap Lock Guarantee — And Why Does It Matter?

Most FIAs are subject to renewal rate risk — the possibility that, after the first year, the carrier may lower the cap rate on your indexed account. While the initial rate might look attractive, there’s no guarantee it’ll stick.

MassMutual Ascend Changes That

With the Cap Lock guarantee, clients can rest easy knowing that their initial S&P 500 cap rate is contractually guaranteed not to decrease for the life of the policy. That means no surprises at renewal — and no erosion of upside potential due to market volatility or shifting carrier economics.

Why Renewal Rate Risk Is A Real Concern

Renewal rate risk is one of the most underappreciated threats in the annuity world. While interest rates rise and fall, carriers can adjust caps, spreads, and participation rates after the first contract year — sometimes significantly. These changes can dramatically reduce a client’s long-term growth potential, particularly if they’re relying on that annuity as a core part of their retirement income strategy.

In uncertain markets, the Cap Lock feature provides a critical level of transparency and predictability — two qualities every retirement investor craves.

Putting It All Together

For clients seeking market-linked growth without market risk — and without the uncertainty of shifting renewal terms — the American Legend 7 and American Landmark 5 offer a compelling story:

  • Top-tier cap rates — now 8.5% and 8.0%, respectively
  • A++ rated carrier strength
  • Guaranteed S&P 500 cap lock for the life of the contract
  • Tax-deferred growth, principal protection, and lifetime income options

These enhancements make a great product even better — and now is the time to take a closer look.

Questions or illustrations?

Reach out to our team today and see how MassMutual Ascend’s Cap Lock FIAs can fit into your clients’ long-term plans.

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Unlocking New Opportunities With FIAs In Today’s Market

Over the past decade, we’ve seen dramatic shifts in the interest rate environment, directly impacting the performance of annuity products.

Between 2018 and 2021, historically low interest rates resulted in lower Fixed Indexed Annuity (FIA) cap rates and modest fixed interest crediting strategies.

While these products still beat the fixed rate environment with market linked growth and protected assets, the growth they provided a few years ago pails in comparison to what is on the table with todays FIAs.

Fast forward to today, and we find ourselves in a much more favorable interest rate climate. Insurance carriers have responded by offering significantly improved FIA cap rates, participation rates, and even premium bonuses—an upfront boost that increases the cash value of a contract from day one.

The Power of Premium Bonuses

One of the standout features of many modern FIAs is the premium bonus. This bonus, which can range from a few percentage points to double-digit figures, is immediately applied to the contract value. For clients who may feel locked into an underperforming FIA from the low-rate era, this presents a unique opportunity. In many cases, the premium bonus can completely offset surrender charges, allowing them to exit an old contract without financial penalty and move into a more competitive, higher-growth potential annuity.

Why This Matters for Agents and Clients

For financial professionals, this shift in the market creates an incredible opportunity to revisit clients’ existing annuity contracts. With a complimentary annuity review, you can assess whether a client’s current FIA is still serving their best interests or if transitioning to a new product could provide them with greater growth potential, better guarantees, and enhanced benefits. Not only does this help clients maximize their retirement savings, but it also generates new business opportunities for agents looking to strengthen client relationships and expand their portfolios.

Take Advantage of the Current Market

If you or your clients hold an FIA that was purchased during the low-rate years, now is the time to explore options. A strategic annuity exchange could mean more earning potential, a stronger retirement plan, and greater peace of mind.

We offer a free annuity review service to help financial professionals evaluate existing contracts and determine the best path forward for their clients. Contact us today to see how you can leverage today’s improved annuity landscape to create better outcomes for your clients — and grow your business in the process.

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