A Qualified Joint and Survivor Annuity (QJSA) provides economic security and lifetime income to spouses, children, or dependents of retirees. A QJSA is a retirement income solution, often used when more traditional investments, such as 401(k)s and IRAs, have been exhausted. It is important to note that a QJSA is the only type of annuity that is qualified to receive favorable tax treatment by the U.S. Internal Revenue Service (IRS).

A QJSA offers a guaranteed form of retirement income, meaning that both the primary annuitant and any listed survivors can look forward to payments that will last as long as either of them are still alive. This guaranteed income can continue long after the primary annuitant passes away, ensuring that there is ongoing security in the event of the primary annuitant’s untimely death.

A QJSA generally requires at least a 50% survivor annuity, meaning that the surviving beneficiary, or beneficiaries, will receive at least half of the income stream that was originally established for the primary annuitant. This is designed to continue long term financial security for the surviving spouse or other beneficiary after the death of the primary annuitant.

In addition to offering security for a surviving spouse or other beneficiary, QJSAs are also suitable for individuals who are in poor health. This is because the QJSA offers the highest guarantee of death benefits compared to other annuity products, and the reduced annuity payments are offset by the higher death benefit payments for the named beneficiary.

Overall, QJSAs are designed to ensure financial stability and provide income-tax free regular payments for the lifespan of the primary annuitant and any named beneficiaries. They offer a more secure alternative to conventional investments, such as IRAs and 401(k)s, and provide peace of mind knowing that there will be ongoing financial security in the event of an untimely death.