A QLAC lets a retiree move a limited amount from a traditional IRA into a deferred annuity excluded from RMD calculations until payments begin, as late as age 85.
How it works
The maximum QLAC amount is the smaller of the IRA balance or the current dollar limit. That amount is excluded from future RMD calculations; the remaining balance stays subject to RMDs as usual.
What this does not include
This computes the maximum QLAC amount only — it doesn’t project the actual future income payments a QLAC would provide, which depend on the specific annuity contract’s terms, the annuitant’s age, and prevailing rates at purchase.
How to use this calculator
- Enter your traditional IRA or retirement account balance.
Frequently asked questions
Did SECURE 2.0 change the QLAC rules?
Yes — SECURE 2.0 eliminated the prior 25%-of-balance percentage cap on QLAC purchases, leaving only the flat, inflation-indexed dollar limit as the governing constraint.
How late can QLAC payments start?
As late as age 85 — a QLAC can defer income (and the associated RMD obligation) further than a regular immediate annuity could.
Can each spouse in a married couple use their own QLAC?
Yes — the dollar limit applies per individual, so each spouse can fund a QLAC up to the individual limit from their own separate retirement accounts.
