QLACs are available in which plans?

Prepare for the CEBS Course 3 Exam with Group Benefits Associate and Retirement Plans Associate content using flashcards and multiple choice questions. Enhance your understanding with hints and explanations for each question, ensuring you're ready for success!

Multiple Choice

QLACs are available in which plans?

Explanation:
QLACs are funded with assets from qualified retirement accounts, specifically defined contribution plans and IRAs. This means you can use funds from 401(k), 403(b), 457(b) plans, or traditional IRAs to purchase a QLAC. They’re not available from defined benefit plans or nonqualified plans. So the option describing defined contribution plans (including IRAs and 457(b)) as the source best fits how QLACs work.

QLACs are funded with assets from qualified retirement accounts, specifically defined contribution plans and IRAs. This means you can use funds from 401(k), 403(b), 457(b) plans, or traditional IRAs to purchase a QLAC. They’re not available from defined benefit plans or nonqualified plans. So the option describing defined contribution plans (including IRAs and 457(b)) as the source best fits how QLACs work.

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