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How is a QLAC different from a "qualified annuity?"

In a word, RMDs are the key difference between a Qualified Longevity Annuity (QLAC) and a Qualified Annuity.

A key difference: the purchase of a deferred  annuity (one that is not a qualified QLAC but is purchased with retirement funds), only the QLAC takes the value of the deferred annuity out of the RMD computation; a QLAC annuity is not counted when computing Required Minimum Distributions.  See our discussions of RMD and QLACs.

Ron Ryan

Ron Ryan is the author of this solution

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Updated on Mon, 14 Aug 2017

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