| A Qualified Longevity Annuity Contract (QLAC) is a deferred income annuity (DIA) that starts making income payments late in life. It is also known as a longevity annuity. QLAC is a unique form of DIA that can be used with certain retirement plans. Created by new federal regulations published in July 2014, these DIAs allow plan participants to allocate some of their qualified plan money to a QLAC. This will reduce the required minimum distributions (RMDs) the person must pay starting at age 70.5, with a consequent modest reduction in RMD-related income taxes. |