What is a Qualified Longevity Annuity Contract (QLAC)?
A Qualified Longevity Annuity Contract (QLAC) provides an alternative investment option for retirement plans like 401(k)s, 403(b)s or IRAs. Most retirement plans require minimum distributions every year once you turn 70½. With QLACs, however, you don’t have to start taking distributions until you reach age 85. By not having to take yearly distributions, you have less income to report on your income tax return and your retirement funds will last longer.