Defined terms for the annuity market and lifetime income landscape.
A qualified annuity is an annuity contract funded with pre-tax dollars inside a tax-advantaged retirement account — such as a traditional IRA, 401(k), 403(b), or similar plan — where the entire distribution is taxed as ordinary income when it comes out.
A QDIA is a category of investment option a defined contribution plan can use as the default for participants who do not affirmatively elect how contributions are invested, receiving specific fiduciary safe-harbor protection under DOL regulations when the plan meets the required conditions.
A qualified longevity annuity contract (QLAC) is a deferred income annuity purchased inside a qualified retirement account that meets specific Treasury requirements, allowing the premium to be excluded from required minimum distribution calculations until income payments commence.
Quantitative easing is a monetary policy in which a central bank purchases large quantities of long-maturity government bonds and other securities to push down longer-term interest rates after short-term rates have already been cut to near zero.
