QLAC
Business & Finance abbreviation · Personal Finance
| Stands for | Qualified longevity annuity contract |
|---|---|
| Categories | Business & Finance |
QLAC stands for Qualified longevity annuity contract, a personal finance abbreviation.
Deferred income annuity bought with IRA or retirement plan money that can postpone payouts until as late as age 85. Money placed in a QLAC is excluded from required minimum distribution calculations until income begins.
Example: Moving part of her IRA into a QLAC lowered her RMDs and guaranteed income well into her 90s.
Usage notes
Introduced by Treasury regulations in 2014. SECURE 2.0 raised the premium limit to $200,000, indexed for inflation, and removed the earlier cap of 25% of the account balance.
Related abbreviations
More personal finance abbreviations
- P2P – Peer-to-peer payments
- PIA – Primary insurance amount
- POD – Payable on death
- PPF – Public Provident Fund
- PSLF – Public Service Loan Forgiveness
- QDRO – Qualified domestic relations order
- RDSP – Registered Disability Savings Plan
- RESP – Registered Education Savings Plan
- RMD – Required minimum distribution
- Roth 401(k) – Roth designated account within a 401(k) plan
- Roth IRA – Roth individual retirement account
- RRIF – Registered Retirement Income Fund