Which statement about required minimum distributions (RMDs) and qualified longevity annuity contracts (QLACs) is correct in 2026?

Explanation

The SECURE Act of 2019 raised the RMD age from 70½ to 72; the SECURE 2.0 Act of 2022 further raised it to age 73 effective in 2023, and it rises again to 75 in 2033 for those born in 1960 or later (IRC §401(a)(9)(C)). A QUALIFIED LONGEVITY ANNUITY CONTRACT (QLAC) under IRC §401(a)(9)(F) is a deferred income annuity purchased inside an IRA or qualified plan that begins payments no later than age 85. SECURE 2.0 increased the per-person QLAC purchase limit (eliminating the prior 25% of account value cap and raising the dollar cap to $200,000 in 2024, indexed thereafter), and the amount used to buy a QLAC is EXCLUDED from RMD calculations until annuitization begins — which is exactly the response combining the age-73 beginning date with the $200,000 indexed QLAC limit and payments starting by age 85. The response keeping the required beginning date at 70½ reflects pre-SECURE law. The response saying a QLAC may be held only in a non-qualified account is wrong; QLACs are expressly authorized inside IRAs and qualified plans. The response calling the QLAC limit unlimited is wrong; there is a statutory dollar limit.