A QLAC, or qualified longevity annuity contract, is a deferred-income annuity that you purchase inside a retirement account such as an IRA or 401(k). It lets you defer a portion of your required minimum distributions until the income begins, no later than age 85. The 2026 premium limit is $210,000 per person across all your retirement accounts.

A QLAC may be suitable for those who desire a steady income in late retirement and are willing to consider the potential trade-offs, such as the possibility of losing the premium if they die before payments begin. Buying one purely to defer required minimum distributions (RMDs) can backfire because the tax bill returns when income begins. The exception is a household sitting just above an Income-Related Monthly Adjustment Amount (IRMAA) Medicare premium threshold, where trimming the RMD can lower premiums enough to offset the deferred tax.

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FAQs

Retirement FAQ

Where can I find the current QLAC limit?

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Retirement FAQ

What happens to a QLAC when you die?

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Retirement FAQ

What is the difference between a QLAC and a nonqualified deferred-income annuity?

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Retirement FAQ

How does a QLAC work?

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Should I buy a QLAC?

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What is a QLAC?

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Retirement FAQ

Which is better for my heirs: a Roth IRA or a traditional IRA?

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