What is a QLAC? A QLAC, or qualifying longevity annuity contract, is a deferred income annuity bought inside a traditional retirement account that starts paying income later in life, and whose value is left out of required minimum distribution (RMD) math until payments begin. It is a specific tax category the IRS defines by rule, not a marketing label.
A QLAC is a qualifying longevity annuity contract held in a traditional IRA or workplace plan that can defer income as late as age 85. For 2026, the premium limit is $210,000 (Source: IRS Notice 2025-67). Prior to annuitization, its value is excluded from the account balance used to calculate RMDs (Source: IRS Instructions for Form 1098-Q, April 2025).
What is a QLAC in plain terms
A QLAC is a deferred income annuity that meets a set of IRS requirements so that its value can be excluded from required minimum distribution calculations before it starts paying out. It is purchased with money already inside a qualified retirement account, and it promises income beginning at a future date the owner selects, which can be as late as age 85 (Source: IRS Instructions for Form 1098-Q, April 2025).
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The “qualifying” part matters. An ordinary deferred annuity does not automatically get QLAC treatment. A contract earns the label only when it satisfies the premium limit, the starting-age ceiling, and the other conditions in Treasury Regulation section 1.401(a)(9)-6. The issuer, not the buyer, certifies QLAC status by filing an IRS form each year (Source: IRS Instructions for Form 1098-Q, April 2025).
Because the concept sits at the intersection of annuity rules and RMD rules, “what is a QLAC” is really two questions: what the product does, and what the tax code lets it do. This guide covers the product-education side. For the annual RMD figures and age triggers themselves, see the Q3 Advisors required minimum distributions guide.
How much you can put into a QLAC in 2026
For 2026, the most that can be paid in premiums across an individual’s QLACs is $210,000 (Source: IRS Notice 2025-67, page 3). That figure is unchanged from 2025, which had risen from the earlier $200,000 base (Source: IRS Notice 2024-80). The limit is a lifetime premium cap per person, applied across all QLACs the individual owns, not a per-contract or per-year figure.
The dollar limit is indexed for inflation for calendar years beginning on or after January 1, 2025, with any increase rounded down to the next lowest multiple of $10,000 (Source: IRS Instructions for Form 1098-Q, April 2025). Because 2026 saw no cost-of-living increase, it held at $210,000 (Source: IRS Notice 2025-67).
QLAC premium limit by year
The QLAC premium limit is a lifetime per-person cap that the IRS adjusts for inflation each year. It stood at $210,000 for both 2025 and 2026, having risen from the $200,000 statutory base set by the SECURE 2.0 Act (Source: IRS Notice 2025-67). The table below lists the applicable dollar limit by year and the primary source that sets each figure.
| Year | QLAC premium limit | Source |
|---|---|---|
| 2023 to 2024 | $200,000 (SECURE 2.0 base, indexed) | SECURE 2.0 Act section 202; T.D. 10001 |
| 2025 | $210,000 | IRS Notice 2024-80 |
| 2026 | $210,000 | IRS Notice 2025-67 |
A widely repeated figure of $200,000 is out of date for a 2026 decision. It was the statutory base set by the SECURE 2.0 Act and has since been indexed upward (Source: IRS Notice 2024-80).
How a QLAC defers RMDs
Prior to annuitization, the value of a QLAC is excluded from the account balance used to determine required minimum distributions (Source: IRS Instructions for Form 1098-Q, April 2025). In practice, moving eligible dollars into a QLAC can shrink the balance that drives the annual RMD calculation, because the parked premium no longer counts in that balance until income begins.
This is the mechanical difference that sets a QLAC apart from a plain annuity. A separate general rule in IRS Publication 590-B (2025) covers annuities bought with part of an IRA balance and can require combining values or reducing the RMD by annuity payments. A QLAC uses its own exclusion instead (Source: IRS Publication 590-B, 2025).
The exclusion is temporary by design. Once QLAC payments start, the income itself is generally taxable and counts as distributions. The deferral applies during the accumulation window, not forever.
The age 85 rule and when income starts
A QLAC’s distributions must begin no later than a specified annuity starting date that is no later than the first day of the month after the employee’s 85th birthday (Source: IRS Instructions for Form 1098-Q, April 2025). The owner can choose an earlier start date, but age 85 is the outer limit that the contract cannot exceed and still qualify.
This ceiling is what makes a QLAC a longevity tool. Deferring income toward the mid-80s concentrates larger guaranteed payments into later years, which is the risk a QLAC is structured to address: outliving other assets.
Which accounts can hold a QLAC (and which cannot)
A QLAC may be purchased or held under a plan or account described in Internal Revenue Code section 401(a), 403(a), 403(b), or 408, or an eligible governmental 457(b) plan (Source: IRS Instructions for Form 1098-Q, April 2025). That covers traditional IRAs and most employer retirement plans. Roth IRAs are explicitly excluded (Source: IRS Instructions for Form 1098-Q, April 2025).
| Account type | Eligible to hold a QLAC? |
|---|---|
| Traditional IRA (section 408) | Yes |
| 401(a) / 403(a) / 403(b) plans | Yes |
| Eligible governmental 457(b) plan | Yes |
| Roth IRA | No (explicitly excluded) |
The Roth exclusion follows a logic: Roth IRAs have no lifetime RMDs for the original owner, so a QLAC’s RMD-deferral feature would have nothing to defer. Investors weighing Roth strategies often look at a Roth conversion separately from any QLAC decision.
How SECURE 2.0 changed QLAC rules
Section 202 of the SECURE 2.0 Act of 2022 reshaped QLACs in two ways: it eliminated the requirement that premiums be limited to 25 percent of the account balance, and it increased the dollar limit from $125,000 to $200,000, adjusted for inflation (Source: IRS final-regulation preamble, T.D. 10001, IRB 2024-33). SECURE 2.0 was enacted December 29, 2022 as Division T of Public Law 117-328.
The timing has a wrinkle. The repealed 25 percent limit and the higher dollar limit apply to premiums paid after December 29, 2022. Premiums paid on or before that date under a pre-existing contract remain subject to the old 25 percent and $125,000 rules (Source: IRS Instructions for Form 1098-Q, April 2025).
The final RMD regulations (T.D. 10001, effective September 17, 2024) implemented much of SECURE 2.0 but reserved the detailed QLAC operational rules to a separate proposed rulemaking, REG-103529-23. The operative premium-limit citation used in the IRS cost-of-living notices remains section 1.401(a)(9)-6(q)(2)(ii) (Source: IRS Notice 2025-67).
How a QLAC is reported: Form 1098-Q
The QLAC issuer files IRS Form 1098-Q, “Qualifying Longevity Annuity Contract Information,” to report QLAC status each year (Source: IRS Instructions for Form 1098-Q, April 2025). Box 3 reports the cumulative total of all premiums paid for the contract through the end of the calendar year, which is how the running total is tracked against the premium limit (Source: IRS Instructions for Form 1098-Q, April 2025).
This is a useful tell. If a contract is a genuine QLAC, an owner should expect Form 1098-Q from the insurer. The form is the paper trail behind the RMD exclusion.
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Q3 Advisors is a registered investment adviser focused on retirement tax planning. This article is educational and is not advice; for guidance on your own circumstances, consult a qualified tax or financial professional.
Frequently asked questions
These answers cover the questions people most often ask about qualifying longevity annuity contracts: the 2026 premium limit, how a QLAC affects required minimum distributions, when income must begin, which accounts qualify, and what SECURE 2.0 changed. Each answer cites the primary IRS source. None of it is advice; confirm any figure that applies to your situation with a qualified professional.
What is the QLAC limit for 2026?
The QLAC premium limit for 2026 is $210,000 (Source: IRS Notice 2025-67). It is a lifetime cap on total premiums across all of an individual’s QLACs, unchanged from 2025. The limit is indexed for inflation for years beginning on or after January 1, 2025, with increases rounded down to the next $10,000 (Source: IRS Instructions for Form 1098-Q, April 2025).
Does a QLAC reduce required minimum distributions?
Yes, indirectly. Prior to annuitization, a QLAC’s value is excluded from the account balance used to calculate RMDs (Source: IRS Instructions for Form 1098-Q, April 2025). Moving eligible dollars into a QLAC can therefore lower the balance driving the annual RMD figure until QLAC income begins, at which point payments are generally taxable distributions.
At what age must a QLAC start paying out?
A QLAC’s distributions must begin no later than the first day of the month after the owner’s 85th birthday (Source: IRS Instructions for Form 1098-Q, April 2025). The owner may choose an earlier start date. Age 85 is the outer ceiling a contract cannot exceed and still qualify as a QLAC under Treasury Regulation section 1.401(a)(9)-6.
Can you buy a QLAC in a Roth IRA?
No. A QLAC can be held in a traditional IRA or plans under sections 401(a), 403(a), 403(b), or an eligible governmental 457(b) plan, but Roth IRAs are explicitly excluded (Source: IRS Instructions for Form 1098-Q, April 2025). Roth IRAs carry no lifetime RMDs for the original owner, so a QLAC’s deferral feature would not apply.
How is a QLAC different from a regular annuity?
A QLAC is a deferred income annuity that meets IRS requirements so its value is excluded from RMD calculations before payout, which an ordinary annuity does not get automatically (Source: IRS Instructions for Form 1098-Q, April 2025). QLAC status also caps premiums at $210,000 for 2026 and requires income to begin by age 85 (Source: IRS Notice 2025-67).
What changed for QLACs under SECURE 2.0?
Section 202 of the SECURE 2.0 Act of 2022 removed the 25-percent-of-account-balance premium limit and raised the dollar limit from $125,000 to $200,000, adjusted for inflation (Source: IRS final-regulation preamble, T.D. 10001, IRB 2024-33). Indexing has since carried that base to $210,000 for 2026 (Source: IRS Notice 2025-67). The changes apply to premiums paid after December 29, 2022; premiums paid on or before that date under a pre-existing contract stay under the old rules (Source: IRS Instructions for Form 1098-Q, April 2025).
Sources
IRS Notice 2025-67 (2026 retirement plan cost-of-living notice), https://www.irs.gov/pub/irs-drop/n-25-67.pdf. IRS Notice 2024-80 (2025 cost-of-living notice), https://www.irs.gov/pub/irs-drop/n-24-80.pdf. IRS Instructions for Form 1098-Q (Rev. April 2025), https://www.irs.gov/instructions/i1098q. IRS final regulations T.D. 10001, Internal Revenue Bulletin 2024-33, https://www.irs.gov/irb/2024-33_IRB. IRS Publication 590-B (2025), https://www.irs.gov/publications/p590b. SECURE 2.0 Act of 2022, Division T of Public Law 117-328. For related figures, see the Q3 Advisors RMD guide, 2026 contribution limits, and Roth conversion statistics.
