Qualified Longevity Annuity Contract

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Pensions - defined contribution - US.

(QLAC).

Longevity annuities are designed to deal with the US pensions problem of retired people 'outliving their savings' caused by the US Required Minimum Distributions rules.

Longevity annuities do not start paying out until later in life, so they can pay out higher annual amounts in those later years, while still enjoying favourable tax treatment.


'Qualified' refers to the compliance with the tax rules, so as to enjoy favourable tax treatment.

A qualified longevity annuity contract is exempted from the US Required Minimum Distributions (minimum withdrawal) rules.

So that more of the total retirement fund can be retained to support income in the later years of life.


Longevity annuities are contrasted with immediate annuities, which start to pay out immediately.


See also