The QLAC 1098-Q: EDU #2549
The Retirement and IRA Show
Jim Saulnier, CFP® & Chris Stein, CFP®
4.3 • 730 Ratings
🗓️ 3 December 2025
⏱️ 76 minutes
🧾️ Download transcript
Summary
Chris’s Summary
Jim and I review the QLAC 1098-Q and walk through how this form reports premiums, fair market value, and contract status. We compare it to Form 5498, outline how the fair market value and excess annuity payments can be used under Secure Act 2 Section 205 with other IRAs, explore the age-85 and surviving-spouse reporting rules, and touch on listener PSAs about using QLACs as part of a broader self-funded long-term care approach.
Jim’s “Pithy” Summary
Chris and I use the QLAC 1098-Q as a way to show how the IRS keeps tabs on your QLAC and why that little form matters more than people think. I talk about it as the “kissing cousin” of Form 5498, walk through how box 3 tracks cumulative premiums against the current $210,000 lifetime limit, and explain how the fair market value and projected income give the IRS what it needs while also giving you the data to run the Section 205 strategy after Secure Act 2.
Then I get into the strange rule that says the company only has to send 1098-Qs until age 85 or death for the original owner, contrast that with the different rule for a surviving spouse, and spell out why it could be a real problem if the insurer stops providing a usable fair market value once income has been turned on. We kick around how that interacts with the prohibition on DIY fair market value calculations, the inability to get a QLAC quote after age 85, and why advisors and clients are going to care which companies keep sending this information even when they technically don’t have to. On top of that, I read listener emails about using QLACs alongside self-funding long-term care and push back on the idea that you only insure things you are “sure” you’ll need.
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Transcript
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| 1:26.3 | with today's show. |
| 1:36.5 | Well, hello and welcome to the Retirement and IRA show EDU edition for this week. |
| 1:43.0 | On today's show, we are going to, I believe, wrap up what will be a third show, a third EDU show, talking about QLACs, qualifying longevity |
| 1:48.4 | annuity contracts, another name for deferred income annuities held inside of an IRA or other |
| 1:56.6 | similar retirement account. If you're not sure what a Q-LAC is, probably don't want to start |
| 2:03.2 | with this show. Just go back a couple of EDU shows and you can kind of get it from the very |
| 2:09.9 | beginning. Today, we're going to talk a bit about the 1098 Q, which is a 1098 issued by the insurance company sent to the IRS and a copy sent to you, |
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