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QLAC Limit 2027: Still $210,000, With the Percent-of-Balance Cap Gone

Updated September 29, 2026. Quick answer: The dollar limit on premiums used to purchase a Qualified Longevity Annuity Contract (QLAC) is $210,000 per individual for both 2025 and 2026, unchanged year over year, per IRS Notice 2025-67. SECURE 2.0 Act §202 eliminated the old rule limiting QLAC premiums to 25 percent of an account’s balance, so the dollar limit is now the only cap. The IRS has not announced a 2026-to-2027 change, and no named forecaster has projected a 2027 figure; the regulation’s own rounding rule means any future increase would land on the next $10,000 multiple, but that is a description of the mechanism, not a projection.

Read box by box from the IRS form text: Form 1098-Q boxes 1a, 1b and 2, Form 1098-Q box 3 and Form 1098-Q box 4.

Related figures and codes: QCD Limit 2027, Retirement Figure Changes for 2027 and RMD Table 2027.

What is the QLAC limit?

The QLAC premium limit is $210,000 per individual for both 2025 and 2026, per IRS Notice 2025-67. It was $200,000 for 2024. The IRS has not announced a 2027 change and no named forecaster has projected one.

The QLAC dollar limit, 2024-2026

YearQLAC dollar limitPercent-of-balance cap
2024$200,000None (eliminated by SECURE 2.0 §202)
2025$210,000None
2026$210,000 (unchanged)None
2027 (not yet announced)Not yet announcedNone

What SECURE 2.0 actually changed, and how the indexing works

Before SECURE 2.0, Treas. Reg. §1.401(a)(9)-6(q)(2) capped QLAC premiums at the lesser of a flat dollar amount or 25 percent of the owner’s account balance. SECURE 2.0 Act of 2022 §202 directed Treasury to eliminate that 25-percent-of-balance test entirely and raise the flat dollar limit from $125,000 to $200,000, indexed for inflation starting with calendar years beginning on or after January 1, 2025; final regulations implementing this (Treasury Decision 10001) were published July 19, 2024. The indexing runs on the same mechanism as the §415 retirement-plan limits, using a base period of the calendar quarter beginning July 1, 2022, except that, per the regulation’s own text, “the amount of any increment to the limit that is not a multiple of $10,000 will be rounded to the next lowest multiple of $10,000.” That is why the limit jumped in a single $10,000 step from $200,000 to $210,000 for 2025 and then held flat for 2026: the underlying inflation-adjusted value has not yet crossed the next $10,000 line.

Why there is no 2027 projection to report

Milliman’s July 2026 IRS limits forecast, the same report this site cites for the 2027 defined benefit and defined contribution plan limits, does not include a QLAC line item at all; no other named forecaster’s 2027 report was found covering it either. The rounding mechanism above means the next published figure, if the underlying indexed value has crossed the next threshold, would land on $220,000, but that is this page’s own description of how the regulation works, not a professional forecaster’s estimate, and it should not be treated as one. The companion page on using a QLAC to reduce required minimum distributions has deliberately never stated a dollar figure for exactly this reason; this page exists to give that figure and be explicit about what is and is not yet known for 2027.

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Sources

The QLAC dollar limits on this page were checked against IRS Notices 2023-75, 2024-80 and 2025-67 on September 29, 2026.

  • IRS Notice 2025-67: the confirmed $210,000 QLAC premium limit for 2026, unchanged from 2025, read directly from the PDF’s text.
  • Treasury Decision 10001, Federal Register, July 19, 2024: the elimination of the 25-percent-of-balance cap, the increase from $125,000 to $200,000 under SECURE 2.0 Act §202, and the $10,000 rounding rule for future increases, read directly from the final rule’s own text.

Statute: Treas. Reg. §1.401(a)(9)-6(q)(2), as amended under SECURE 2.0 Act of 2022 §202.

General information, not tax or legal advice. This page will be updated with the official 2027 figure the day it is announced.