![Show Menu](styles/mobile-menu.png)
![Page Background](./../common/page-substrates/page0042.jpg)
A Better Choice for Participants and Their Districts
Income Replacement-Why Does the RT Offer a QLAC?
What is a QLAC and how does it help participants in providing guaranteed
income in retirement?
Qualified Longevity Annuity Contract (QLAC) allows participants to begin their income
payments after age 70½
up to age 85. This option allows for deposits of the lesser of
$125,000 or 25% of the account balance under the plan without incurring required
minimum distribution (RMD) penalties.
Participants can purchase the product through transfers of amounts from qualifying
plan assets. Participants purchase a specific income stream that will begin at least 13
months after the purchase date but not later than age 70½ if not purchased as a
QLAC.
It is available only with employer-sponsored retirement and deferred compensation
programs such as a 403(b) plan, governmental 457(b) deferred compensation plan,
including designated Roth accounts in a 403(b) or governmental 457(b) plan.
How the RT Helps Your Employees
Secure a Good Retirement