What is a Qualified Longevity Annuity Contract (QLAC)?

A Qualified Longevity Annuity Contract, or QLAC, is pension-like product you can buy for yourself using up to $130,000 of your traditional IRA or 401(k). As a member of the Deferred Income Annuity family, it converts your savings into a paycheck that starts at some point in the future and continues for as long as you’re alive.

Unlike other DIAs, QLACs are exempt from the standard required minimum distribution (RMD) rules applied to qualified retirement savings. A change to the tax code in July 2014, which until that point required withdrawals from pre-tax retirement savings to begin at age 70½, now allows for a QLAC’s RMDs to be deferred to as late as age 85.


In short, a QLAC is:

  • A pension-like product that converts savings into lifetime retirement income,
  • purchased with up to $130,000 of your traditional IRA or 401(k) savings,
  • a Deferred Income Annuity (DIA) with income starting between ages 70½ and 85,
  • and a way to defer your IRA’s required minimum distributions and associated income taxes.
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Head to the QLAC Guide to learn more about the product, its benefits, and next steps for buying.