Already Have An Annuity? Find out if its still the right one for you today...take the quiz now →
    Institute of Financial Wellness
    The Annuity FinderPowered By The Institute of Financial Wellness
    ← Back

    Types of Annuities

    QLACs (Qualified Longevity Annuity Contracts) Explained

    A QLAC lets you use a portion of your IRA or 401(k) to buy guaranteed late-life income — and defer required minimum distributions on those dollars.

    Senior reviewing IRA and longevity planning documents
    QLACs help protect against running out of money in your 80s and 90s.

    What Is a QLAC?

    A Qualified Longevity Annuity Contract is a special deferred income annuity that can be funded with qualified retirement assets (IRAs, 401(k)s) and is designed to provide income later in life — typically starting between ages 75 and 85.

    Why QLACs Exist

    The IRS created QLACs to help retirees protect against longevity risk. Money used to buy a QLAC (subject to current IRS limits) is excluded from RMD calculations until income begins.

    How They Help

    QLACs convert a slice of your retirement savings into a guaranteed paycheck for later life — exactly when other assets and savings may be depleted.

    Considerations

    QLACs have IRS-defined limits on how much you can contribute. Income start dates must comply with IRS rules. Make sure you understand the surrender and refund features before purchasing.

    Who QLACs May Fit

    Pre-retirees worried about outliving savings, especially those with healthy genetics, longevity in the family, or limited guaranteed income outside Social Security.

    Related reading

    ← Back