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