TL;DR
A Qualified Longevity Annuity Contract (QLAC) lets you move up to $210,000 of qualified retirement money (the 2026 IRS limit) out of your required minimum distribution calculation and into a deferred income annuity that begins paying no later than age 85. Eight major insurers compete in the QLAC market: New York Life, MassMutual, Pacific Life, Guardian, Lincoln Financial, Brighthouse, Integrity Life, and United of Omaha. Because QLAC contracts are nearly identical in structure, the buying decision comes down to two things: payout amount and carrier financial strength.
Short answer: Get quotes from at least three top-rated carriers (New York Life, MassMutual, and Pacific Life is a good starting trio). Take the highest payout from the carrier with an A+ AM Best rating or better. Anything else is overthinking it.
What Is a QLAC?
A Qualified Longevity Annuity Contract is a deferred income annuity (DIA) purchased with qualified retirement money (IRA, 401(k) rollover, 403(b) rollover) that gets special tax treatment under IRS rules. The premium you put into a QLAC is excluded from your account balance for required minimum distribution (RMD) purposes, and income payments can be deferred until as late as age 85.
Two things make this useful:
- RMD reduction. If you have $1,000,000 in an IRA at age 73 and you put $210,000 into a QLAC, your RMD is calculated on the remaining $790,000. Your taxable RMD shrinks accordingly.
- Longevity insurance. A 65-year-old who buys a QLAC today with payments deferred to age 85 typically receives a payout multiple of 4 to 7 times what an immediate annuity would pay on the same premium. The insurer holds the money for 20 years, many buyers do not live long enough to collect, and the survivors get outsized payouts.
If you are new to deferred income annuities, see our explainer: what is a deferred income annuity (DIA).
2026 QLAC Rules and Limits
The QLAC framework was created by the IRS in 2014. The SECURE 2.0 Act of 2022 made several major upgrades, the biggest being the elimination of the prior 25%-of-account-balance cap and the increase of the dollar limit to $200,000 (now indexed for inflation). The 2026 limit is $210,000 per individual.
| Rule | 2026 Detail |
|---|---|
| Maximum QLAC premium per person | $210,000 (indexed for inflation) |
| Maximum per couple | $420,000 (each spouse can max separately) |
| Latest income start date | The first day of the month following age 85 |
| Eligible funding sources | Traditional IRA, 401(k), 403(b), governmental 457(b) |
| Ineligible funding sources | Roth IRA, Roth 401(k), inherited IRA, defined benefit plan |
| Death benefit options | Return of premium, joint life, period certain (subject to QLAC rules) |
| Cash surrender value | None. QLACs are illiquid by design. |
Two practical implications. First, a married couple who has saved diligently can shelter $420,000 from RMD calculations by maxing both spouses. Second, you cannot get the money back. QLACs trade liquidity for the income guarantee and the tax benefit. If that trade-off does not fit your situation, do not buy one.
The Best QLAC Companies for 2026
QLAC products from different carriers are nearly identical in structure. The IRS rules dictate the basics: the deferral period, the income start date limits, the death benefit options. What differs is the carrier behind the contract, the payout per dollar of premium, and the ancillary features. Here are the eight major carriers, ranked.
1. New York Life
AM Best A++ (Superior). The largest mutual life insurer in the United States, with $782 billion in assets under management as of year-end 2025 and one of the longest dividend-paying histories in the industry (continuous since 1854). New York Life’s Guaranteed Future Income Annuity is the QLAC contract, and the company has been one of the top three QLAC writers by volume since the rules went into effect in 2014.
What makes New York Life stand out: minimum issue age of 31 (most carriers require 50 or 52), broad payout structure flexibility, and the strongest mutual rating profile in the market. Often at or near the top of QLAC payout quotes, particularly for ages 60 to 70 deferring to 80 or 85. See our New York Life review for the full carrier profile.
2. MassMutual
AM Best A++ (Superior). MassMutual offers QLAC structures through the RetireEase Choice deferred income annuity. Same A++ profile as New York Life, 156 consecutive years of dividend payments, and a flexible-premium DIA chassis that lets you make multiple purchase payments over time (rather than a single lump sum). Useful if you want to build the QLAC up over several years rather than commit the full $210,000 in one shot.
Payouts are competitive, rarely highest, but MassMutual prices for stability rather than rate leadership. See our MassMutual RetireEase review for product mechanics.
3. Pacific Life
AM Best A+ (Superior). Pacific Life has been one of the most consistent QLAC marketers since 2014 and recently celebrated its tenth anniversary in the QLAC space. The Pacific Secure Income product is the QLAC chassis. Minimum issue age is 52.
Pacific Life consistently posts competitive QLAC payouts and has invested heavily in QLAC education for advisors, which means most independent agents and broker-dealers know the product well. A reliable choice that often appears in the top three quotes.
4. Guardian Life
AM Best A++ (Superior). Guardian Life is one of the smaller mutual insurers but holds the same top-tier rating profile as MassMutual and New York Life. Their DIA product is positioned for QLAC use, and Guardian has a long history of conservative pricing and strong claims-paying ability. Less commonly found at the top of payout tables, but worth a quote if you value the A++ rating.
5. Lincoln Financial
AM Best A+ (Superior). Lincoln Financial offers QLACs through its Lincoln Deferred Income Solutions product. Stock company (not mutual), but with strong distribution through broker-dealers and a competitive pricing approach. Lincoln has experience across the full annuity spectrum (variable, RILA, fixed, indexed), which gives them deep DIA pricing infrastructure.
6. Brighthouse Financial
AM Best A (Excellent). Brighthouse spun off from MetLife in 2017 and has competed actively in the income annuity space since. The Brighthouse SecureKey Fixed Indexed Annuity and Guaranteed Income Builder products can be structured for QLAC use. Lower rating than the top mutuals but often very competitive on payout for ages 65 to 75 deferring to 80.
7. Integrity Life
AM Best A+ (Superior). Integrity is a subsidiary of Western & Southern Financial Group. Smaller than the top names but produces some of the best DIA payouts on a per-dollar basis. Worth a quote if your independent agent has access to Integrity’s selling agreement.
8. United of Omaha
AM Best A+ (Superior). The annuity arm of Mutual of Omaha. Less aggressive on QLAC pricing than the top tier, but a solid carrier with a strong A+ rating and a household-recognizable brand. Useful as a “comfort name” option if your buyer wants a name they recognize.
Side-by-Side: Top QLAC Carriers
| Carrier | AM Best | Min Age | Min Premium | Notes |
|---|---|---|---|---|
| New York Life | A++ | 31 | $10,000 | Most flexible age, top-tier ratings, often best payout |
| MassMutual | A++ | 50 | $10,000 | Flexible-premium DIA, A++, conservative pricing |
| Pacific Life | A+ | 52 | $10,000 | 10-year QLAC veteran, consistently competitive |
| Guardian | A++ | 50 | $10,000 | Top ratings, smaller QLAC presence |
| Lincoln Financial | A+ | 50 | $10,000 | Stock company, strong BD distribution |
| Brighthouse | A | 50 | $25,000 | Often competitive payouts, lower rating |
| Integrity Life | A+ | 50 | $10,000 | Best per-dollar payouts in some quotes |
| United of Omaha | A+ | 50 | $10,000 | Recognizable brand, conservative pricing |
How to Choose the Right QLAC Carrier
The “best” QLAC is the one offering the highest contractual income for your specific scenario at the moment you bind. Because QLAC products are standardized by IRS rules, the only real differences between carriers are price and rating. Here is the process:
- Decide your target deferral period. Most QLAC buyers defer income to age 80, 82, or 85. Longer deferral = higher payout per dollar of premium.
- Get quotes from at least three carriers. Always include New York Life and one or two of MassMutual, Pacific Life, Lincoln, or Integrity. Quotes change every 7 to 10 days, so always pull fresh.
- Set a rating floor. We recommend A or A+ minimum from AM Best. Below that, the rating discount usually does not compensate for the long contract duration.
- Take the highest payout from a carrier that meets your rating floor. Do not overthink it. The product is the same across carriers in any meaningful structural sense.
Pros and Cons of QLACs
Pros
- RMD reduction. Up to $210,000 per person ($420,000 per couple) sheltered from RMD calculations.
- Tax deferral. Premium and growth remain tax-deferred until income payments begin.
- Longevity insurance. Highest payout-per-dollar of any annuity structure, because of the long deferral.
- Guaranteed lifetime income. Payments continue regardless of how long you live.
- Pension-like security. Comparable to a defined-benefit pension that you fund yourself.
Cons
- Total illiquidity. No surrender value, no withdrawal options. The money is gone until income starts.
- Mortality risk. If you die before age 85 with no return-of-premium feature, the insurer keeps the money. (Most QLAC contracts now offer return-of-premium death benefits, but they reduce payout.)
- Inflation risk. Most QLAC payouts are fixed in nominal dollars. A $30,000 annual payment starting at age 85 may not buy much.
- $210,000 cap. Useful for moderate IRA balances but not enough to materially shift RMD on a $3M+ account.
Who Should Buy a QLAC?
QLACs make the most sense for:
- Pre-retirees ages 60 to 73 with $500,000 to $2,000,000 in qualified retirement accounts
- Buyers who expect to live into their 80s or 90s (family longevity history matters)
- Buyers who want to reduce RMD-driven taxable income in their 70s
- Buyers without a defined benefit pension who want to create one
- Couples who want guaranteed income for the surviving spouse
QLACs do not make sense if you need the liquidity, expect a shorter retirement (poor health, family history of early mortality), or have so much retirement savings that the $210,000 cap is a rounding error.
QLAC FAQ
What is the 2026 QLAC limit?
$210,000 per individual. A married couple can shelter up to $420,000 if both spouses max their individual limits. The dollar amount is indexed for inflation and adjusts annually.
When must QLAC income payments begin?
No later than the first day of the month following the QLAC owner’s 85th birthday. You can choose any earlier start date that matches your retirement plan.
Can I buy a QLAC with Roth IRA money?
No. Roth IRAs and Roth 401(k)s are not eligible for QLAC funding because they are not subject to RMDs. QLACs only make tax sense with traditional IRA, 401(k), 403(b), or governmental 457(b) money.
Can I cancel a QLAC after I buy it?
Generally no. Most QLAC contracts have a brief free-look period (typically 10 to 30 days, depending on state) during which you can cancel for a full refund. After that, the contract is binding and there is no surrender value.
How much income will a QLAC pay?
Highly age and deferral dependent. As a rough benchmark for early-2026 pricing: a 65-year-old male putting $200,000 into a QLAC deferring to age 85 might receive roughly $50,000 to $65,000 per year for life starting at 85. Always pull a current quote from the carrier you are considering, because rates change weekly. Use a third-party shopping platform like Blueprint Income or work with an independent agent.
What happens if I die before payments begin?
Depends on the death benefit structure you choose. Return-of-premium QLACs return your principal to your beneficiary as a lump sum or installments. Joint life QLACs continue payments to the surviving spouse. Period certain QLACs guarantee a minimum number of payments to beneficiaries. Each death benefit option reduces the lifetime payout slightly.
The Bottom Line on QLACs
QLACs are one of the most underused tools in retirement planning. The IRS designed them specifically to address two real problems: longevity risk (outliving your savings) and RMD-driven tax inefficiency. SECURE 2.0 made them substantially more attractive by raising the cap to $200,000+ and removing the percentage-of-account-balance limit. And yet most pre-retirees we speak to have never heard of one.
The product is largely a commodity. The IRS dictates the structure, every major carrier offers nearly the same chassis, and the rating differences across the top eight carriers are within a narrow band. The only thing that materially varies is the payout you get for your $210,000 of premium. So shop, take the highest quote from a carrier rated A+ or better, and stop overthinking it.
Our preferred starting point: get quotes from New York Life, MassMutual, and Pacific Life. Add a fourth quote from whichever fixed-income annuity carrier your independent agent rates highest at the moment. Pick the highest payout. Move on.
For more on related products, see our best SPIA rates page (immediate annuities) or deferred vs immediate annuity (when each makes sense). For RMD planning context, see our tax strategies hub.
