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Question

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

Answer

A QLAC is a type of deferred-income annuity that is purchased inside a retirement account and meets IRS rules for required minimum distribution (RMD) deferral. A nonqualified deferred-income annuity is bought with after-tax dollars and doesn’t offer RMD deferral, but its payments are split between tax-free return of capital and taxable earnings.

Related FAQs

Where can I find the current QLAC limit?

What happens to a QLAC when you die?

How does a QLAC work?
Retirement Financial Planning Retirement Planning Annuities Living in Retirement Tax Basics Cash Flow Management Investors FAQs
Last Updated Oct. 14, 2026
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