What happens if a contract holder accidentally exceeds the QLAC limits?

If you accidentally exceed the QLAC purchase maximum, there is a remediation process. It involves the insurer returning the excess to your account before the end of the calendar year of the year following the purchase.

It always best to avoid going over the QLAC purchase size limitation. Currently, the maximum QLAC you can purchase is $130,000 (if you had at least $520,000 in qualified plan assets as of December 31 of last year) or 25% of your total portfolio (if you had less than $520,000 in your portfolio as of December 31 of last year).

Contact our team if you have any additional questions about this topic.

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Head to the QLAC Guide to learn more about the rules governing QLAC purchases.