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). The amount used to buy a QLAC is EXCLUDED from RMD calculations until annuitization begins. Option B reflects pre-SECURE law. Option C is wrong; QLACs are expressly authorized. Option D is wrong; there is a statutory dollar limit.
Law Reference: SECURE Act 2.0 (2022); IRC §401(a)(9) (RMDs); IRC §401(a)(9)(F) (QLAC)Practice all 315 questions free — no signup required.
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