# Hide $210K in Your IRA From the IRS Until Age 85

> A little-known tax strategy lets retirees shrink required withdrawals by locking money into an annuity, but the trade-offs are steep.
- Title: Hide $210K in Your IRA From the IRS Until Age 85 | Shortify
- Summary: A little-known tax strategy lets retirees shrink required withdrawals by locking money into an annuity, but the trade-offs are steep. QLACs can meaningfully…
- Keywords: qlac, qualified longevity annuity contract, required minimum distributions, rmd, ira, retirement planning, tax strategy, annuity, deferred income, irs, secure 2.0 act, Hide
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/09/20/buy-a-210000-qlac-inside-your-ira-and-the-irs-stops-counting-that-money-toward-rmds-until-you-turn-85
- Author: Jake FitzGerald
- Published: 2026-09-20T10:35:06+00:00
- Read time: 2 min
- Topics: qlac, qualified longevity annuity contract, required minimum distributions, rmd, ira, retirement planning, tax strategy, annuity, deferred income, irs, secure 2.0 act
## What a QLAC actually is
A QLAC is a deferred income annuity you buy inside a traditional IRA or 401(k). You pay a lump sum today and receive fixed monthly checks starting as late as age 85.
## The IRS stops counting that money
The IRS excludes your QLAC premium from the balance used to calculate required minimum distributions. Up to $210,000 per person can be sheltered this way under 2026 rules.
## How the math shifts in practice
A 73-year-old with $1 million in an IRA normally owes about $37,736 in RMDs. Moving $210,000 into a QLAC cuts that to roughly $29,811, freeing up taxable income for 12 years.
## You lose liquidity forever
Once you pay the premium, you cannot withdraw the money, take a loan against it, or access it for emergencies. Most QLACs offer no cash surrender value.
## Taxes are deferred, not eliminated
Every dollar the QLAC pays out is taxed as ordinary income, just like a regular IRA distribution. You are trading smaller RMDs now for larger guaranteed taxable checks later.
## Interest rates matter a lot
Higher rates mean better QLAC payouts. With the 10-year Treasury at 5 percent in September 2026, rates are much higher than during the low-rate era, strengthening the case.
## Who should actually consider this
QLACs suit healthy retirees with family longevity, large pre-tax IRAs, other liquid assets, and real longevity concerns. They are poor fits for those with short life expectancy or thin reserves.
## Get multiple quotes first
Compare offers from highly rated insurers, confirm start dates and riders, and run the numbers against a Roth conversion. This decision does not unwind, so consult a fee-only fiduciary.

> This is the kind of decision worth pricing with a fee-only fiduciary or CPA before the check clears, because it does not unwind.
## Key takeaway

QLACs can meaningfully reduce taxable RMDs for wealthy retirees with longevity concerns, but they eliminate liquidity and lock in ordinary income taxes later.