Retirees Can Shield Up to $210,000 From RMD Calculations With a QLAC

A Qualified Longevity Annuity Contract (QLAC) allows retirees to move up to $210,000 of eligible pre-tax IRA money out of the balance used to calculate required minimum distributions (RMDs). The 2026 limit is $210,000 per person, according to IRS Notice 2025-67.
QLAC payments can be deferred until as late as age 85. The money is taxed when payments begin, but the amount placed in the QLAC is excluded from RMD calculations during the deferral period.
The strategy comes with trade-offs: QLAC funds are generally illiquid, inflation can reduce the purchasing power of future payments, and death-benefit terms vary by contract. Roth IRAs do not qualify, while eligible pre-tax IRAs and 401(k) assets may.