Short answer
A QLAC is an IRA longevity annuity that starts income as late as 85 and skips your RMD math.
A QLAC is a qualifying longevity annuity contract bought inside a traditional IRA or retirement plan. The IRS says you can use up to a flat dollar limit, which is 210,000 dollars for 2025 and 2026, that the old 25 percent of balance limit was repealed, and that income must begin no later than age 85. Importantly, the IRS says the QLAC value is left out of the balance used to figure your required minimum distributions, so it can lower RMDs while securing later-life income.
Start here
What you actually came to find out
Plain answers first. Sources stay below for checking details.
How much can I put in?
The IRS limit is 210,000 dollars for 2025 and 2026.
Is there still a 25% limit?
No. The IRS says the 25 percent of balance limit was repealed.
When must income start?
The IRS says no later than age 85.
Does it affect my RMDs?
Yes. The QLAC value is left out of the RMD balance.
Premium limit
$210,000
The IRS says the QLAC premium limit is 210,000 dollars for 2025 and 2026.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
25% limit
Repealed
The IRS says the old 25 percent of balance limit was repealed.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
Start age
By 85
The IRS says QLAC income must begin no later than age 85.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
RMD effect
Excluded
The IRS says the QLAC value is excluded from the RMD balance.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
The plain answer is that a QLAC does two jobs at once: it buys income for your later years and it sets that money aside from the RMD calculation until payments begin.
Neutral landscape
The shape of the question
The IRS is the main source because it sets the QLAC premium limit, start age, and RMD exclusion.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
The premium limit is a flat dollar figure, 210,000 dollars for 2025 and 2026, after SECURE 2.0 repealed the 25 percent limit.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
The start-age rule caps the deferral at age 85.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions)
The RMD exclusion is the planning feature, since the QLAC value is left out of the balance used to figure RMDs.
Source trail: IRS: QLAC Rules (Form 1098-Q Instructions), IRS: Required Minimum Distributions
Curator core
What the authorities say
These sources are here for the reader who wants to check the work. The plain-English answer stays above them.
Source 01
IRS
QLAC Rules (Form 1098-Q Instructions)
The IRS instructions for Form 1098-Q set the rules for Qualifying Longevity Annuity Contracts, including the premium limit, the repeal of the 25 percent limit, and the latest start age.
Source framing
The IRS says QLAC premiums are capped at a flat dollar limit (210,000 dollars for 2025 and 2026), the 25 percent limit was repealed, income must begin by age 85, and the QLAC value is excluded from the balance used to figure required minimum distributions.
Strongest for: the official QLAC premium limit, start age, and RMD exclusion
Read at IRSSource 02
IRS
Required Minimum Distributions
The IRS explains required minimum distributions, including the start age and the Uniform Lifetime Table used to calculate them.
Source framing
The IRS says required minimum distributions generally start at age 73 and are figured by dividing the prior year-end balance by a factor from the Uniform Lifetime Table.
Strongest for: the RMD start age and calculation method
Read at IRSPlain-English forks
The forks people face
Most retirement questions hide a few smaller decisions. These are the practical pieces that change the plan.
Is the money in a traditional IRA?
Why it matters: A QLAC is bought inside an IRA or retirement plan.
In real life: This fork sets whether a QLAC applies.
What to look at: What to look at: the IRS QLAC rules.
Do you want lower RMDs?
Why it matters: The QLAC value is excluded from the RMD balance.
In real life: This fork is the tax-timing benefit.
What to look at: What to look at: how the exclusion lowers RMDs.
When do you want income to start?
Why it matters: Income can be deferred as late as age 85.
In real life: This fork sets the deferral length.
What to look at: What to look at: the start date and payout.
Common questions
Quick answers
Short, plain answers for the questions people usually have next. The source trail stays available below.
What is a QLAC?+
A QLAC is a qualifying longevity annuity contract bought inside a traditional IRA or retirement plan that pays income starting at a future age.
How much can I put into a QLAC?+
The IRS says the premium limit is a flat dollar amount, which is 210,000 dollars for 2025 and 2026, and that the old 25 percent of balance limit was repealed.
When does QLAC income have to start?+
The IRS says income must begin no later than age 85.
How does a QLAC affect my RMDs?+
The IRS says the QLAC value is excluded from the balance used to figure required minimum distributions, so it can lower your RMDs until payments begin.
Who does a QLAC suit?+
It tends to suit someone with traditional IRA money who wants later-life income and smaller required withdrawals in the meantime.
How this page is curated
This page uses the IRS Form 1098-Q instructions for the QLAC rules and the IRS RMD page. The 210,000 dollar premium limit reflects the inflation-indexed figure for 2025 and 2026. It is neutral education, not a recommendation to buy any product.
Read the planner methodologyTrust anchor
Sources used on this page
Every source named above is listed here in one place.
IRS. QLAC Rules (Form 1098-Q Instructions)
https://www.irs.gov/instructions/i1098qIRS. Required Minimum Distributions
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
Before you act on this
This plan is educational. It is not personalized financial, tax, or insurance advice. Projections illustrate the math, they do not predict the future. Talk to your own licensed financial professional before acting on any of it.