QUALIFIED LONGEVITY ANNUITY CONTRACT (QLAC)
01.Core Concepts
• Deferred annuity purchased in a DC plan or IRA to be annuitized at a later age. • Must be annuitized by age 85 • Up to $210,000 (in 2025) can be used to purchase a QLAC within a DC plan or IRA. • Deferred funds in the QLAC are not included in the account balance when calculating RMDs. • Can work as a reserve fund to mitigate the risks of superannuation and/or inflation.