QLAC is a retirement strategy in which a portion of the required minimum benefits (RMD) is deferred until a certain age (maximum limit is 85 years). The insurer assumes market and interest rate risk.
Under current rules, an individual may spend 25% or $135,000 (whichever is less) of their retirement savings account or IRA to purchase a QLAC.
The main benefit of QLAC is the tax deferral that accompanies RMD.