About the QLAC Calculator
This QLAC calculator models a qualifying longevity annuity contract — a deferred income annuity bought with IRA or 401(k) money that starts paying as late as age 85. Money used to buy a QLAC is left out of the balance used to figure required minimum distributions until the income begins, so a QLAC both insures against outliving your savings and trims the taxable RMDs you must take in your 70s.
Enter your pre-tax retirement balance, the premium, the age income starts and the annual income from an insurer’s quote. The calculator projects RMDs with and without the QLAC using the IRS Uniform Lifetime Table, totals the RMDs you defer, estimates the tax deferred at your marginal rate, and shows how many years of income it takes to get your premium back.
For 2026 the lifetime QLAC premium limit is $210,000 per person (IRS Notice 2025-67), across all your IRAs and plans; SECURE 2.0 removed the old 25%-of-balance cap. RMDs start at 73 for people born 1951–1959 and 75 for those born 1960 or later. Income quotes vary by insurer, age, sex and whether you choose a return-of-premium death benefit, so use a real quote.
With the default inputs, the rmds deferred before income starts is $72,307.04. Change any value above to recalculate instantly.
How to use the qlac calculator
- 1Enter your pre-tax retirement balance and the age you would buy the QLAC.
- 2Enter the premium (up to $210,000 in 2026) and the age income should start — no later than 85.
- 3Enter the annual income from an insurer’s quote for that premium and start age.
- 4Choose your RMD starting age, growth rate and marginal tax rate.
- 5Review the RMDs deferred, tax postponed and payback age, and compare different start ages.
Formula and method
The QLAC premium is removed from the account on the purchase date, and the remaining balance grows at your expected rate. From your RMD starting age, each year’s RMD is the start-of-year balance divided by the IRS Uniform Lifetime Table factor for that age (26.5 at 73, 24.6 at 75, 20.2 at 80). The calculator runs this twice — with the full balance and with the balance minus the premium — and adds up the difference until the QLAC income starts. That difference, times your marginal rate, is the tax you postpone.
Once income begins, the QLAC payments themselves are fully taxable and satisfy the RMD for the annuity. The payout rate is annual income ÷ premium, and the payback age is when cumulative income first equals the premium, ignoring the time value of money and taxes. The projection holds the growth rate constant and assumes RMDs are spent, not reinvested.
- Factor(age)
- Distribution period from the IRS Uniform Lifetime Table
- Premium
- Amount used to buy the QLAC (2026 limit $210,000)
- Income
- Guaranteed annual payment quoted by the insurer
Worked examples
$200,000 QLAC at 65, income from 80
By 75 the $200,000 that went into the QLAC would have grown to about $325,779, so the first RMD is $13,243 smaller ($325,779 ÷ 24.6). Over ages 75–79 about $72,307 of RMDs are deferred, postponing roughly $15,908 of tax at 22%. The $60,000 of yearly income repays the premium by age 84.
Born 1955: RMDs from 73, income at 85
Buying at 70 with income at 85 defers RMDs on the premium (and its growth) for twelve years, ages 73–84 — about $134,947 in total, postponing roughly $29,688 of tax. The $70,000 a year from 85 to 89 totals $350,000 and repays the premium by 88.
Premium above the limit
Only $210,000 can go into QLACs in 2026, so the premium is capped. The same $60,000 quote is then 28.6% of the premium — in practice the insurer would quote income on the smaller premium.
Frequently asked questions
What is the QLAC limit for 2026?+
You can put up to $210,000 into QLACs in 2026, unchanged from 2025. It is a lifetime limit per person across all IRAs and employer plans, and since SECURE 2.0 there is no longer a cap of 25% of your account balance.
How does a QLAC reduce RMDs?+
The value of a QLAC is excluded from the account balance used to calculate required minimum distributions until payments begin. A $200,000 QLAC therefore lowers the balance your RMDs are based on, deferring tax on that money until the income starts.
When must QLAC payments start?+
Under the QLAC regulations, income must begin no later than age 85 (the start of the month after your 85th birthday). You can choose an earlier start date, which gives lower annual income but begins sooner.
What happens to a QLAC if I die before payments start?+
It depends on the contract. A life-only QLAC pays nothing; a return-of-premium option refunds the premium (less any payments) to beneficiaries, and a joint-life QLAC can continue income to a spouse. These features reduce the income quoted.
Can I buy a QLAC with Roth IRA money?+
No. QLAC rules exist to reduce required minimum distributions, and Roth IRAs have no RMDs for the owner, so QLACs are bought with traditional IRA, 401(k), 403(b) or governmental 457(b) money.
Is QLAC income taxable?+
Yes. Because the premium came from pre-tax retirement money, QLAC payments are taxed as ordinary income when received, just like other distributions from the account.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.