QLAC

Is the value of QLAC included in in the pro-rata formula in where an individual does a back-door Roth conversion?



Yes, because it is an owned IRA, albeit an IRA annuity. That said, the year end value of the QLAC must be determined by the insurance company and reported to the owner by 1/31 of the following year, therefore the taxable portion of any conversion or any IRA distribution where IRA basis exists (from non deductible contributions) will not be clear until the the insurance company discloses the year end value.  This situation exists for any IRA annuity, whether a QLAC or not.

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