hard · Certified Financial Planner Retirement

Whitaker, aged 68, purchases a Qualified Longevity Annuity Contract (QLAC) inside a traditional IRA.

How does this purchase affect Whitaker's Required Minimum Distributions (RMDs)?

  1. The entire IRA is exempt from RMDs until age 85
  2. The value of the QLAC is excluded from the account balance used to calculate RMDs
  3. The RMDs increase because the annuity payments are treated as additional contributions
  4. The QLAC must begin payments at age 73 to satisfy the SECURE 2.0 requirements

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