QLAC Limit 2026: $210,000 Per Person
You can put up to $210,000 into QLACs across all your IRAs and employer plans combined in 2026, and each spouse has their own limit. The old cap of 25% of your account balance was repealed by SECURE 2.0, so the dollar limit is the only one. (IRS Notice 2025-67)
What's allowed:
- Payments starting at any age up to 85
- Joint-and-survivor payments for you and a spouse
- A return-of-premium death benefit for your heirs
QLAC Calculator: RMD and Tax Savings Year by Year
Each year until payments start, your RMD drops by the QLAC premium divided by your life-expectancy factor. At 73 the factor is 26.5, so a $210,000 QLAC lowers that year's RMD by roughly $7,900 — about $1,700 of tax deferred in the 22% bracket. The calculator projects every year to your start age. (Treas. Reg. §1.401(a)(9)-9 tables)
What do you give up with a QLAC?
You trade flexibility for a guaranteed check later. Three costs matter most, and none of them shows up in the RMD math above, so weigh them before you sign a contract.
- Access: the money can't come back out.
- Inflation: most QLACs pay a fixed amount, which buys less every year.
- Insurer risk: payments depend on the insurance company; state guaranty associations cover failures only up to a limit.
Our take: buy it for longevity, not for the RMD trick
The tax deferral is modest. The real value of a QLAC is guaranteed income if you live into your 90s — check your odds on the life expectancy calculator. Then compare this year's RMD and its tax bill with and without one.