This site may contain affiliate links. We may earn a commission if you sign up through our links. Content is for educational purposes only and is not financial, investment, tax, or legal advice. Consult a qualified professional before making financial decisions.

Back to Glossary

QLAC (Qualified Longevity Annuity Contract)

Income & Distributions

A special type of deferred annuity that allows retirees to use a portion of their retirement savings (up to $200,000 as of 2024) to purchase guaranteed income that begins at an advanced age (up to 85). QLACs are excluded from RMD calculations, helping reduce required withdrawals and taxes while providing longevity insurance for later years.

Related Terms