A Qualified Longevity Annuity Contract (QLAC) is a type of deferred income annuity purchased with funds from a traditional IRA or 401(k) that begins paying out guaranteed income at a future age, typically 80 or 85. It's specifically designed to protect against the risk of outliving your money in the later years of retirement when other savings may be running low. One of its key benefits is that the funds used to purchase a QLAC are excluded from required minimum distribution (RMD) calculations, reducing your taxable income in the years before the payments begin. The IRS sets limits on how much of your retirement account balance can be used to buy a QLAC. It's a planning tool best suited for people who want a guaranteed income floor deep into retirement and are comfortable not accessing those funds until later.