Guide
Can you get guaranteed lifetime income from a Roth IRA?
By Secure Retirement PlannerUpdated
Once you are 59½ and your first Roth is five tax years old, lifetime annuity income in your Roth IRA is tax-free under 2026 law. Your Roth can hold an annuity that pays you a set income for life. That income is guaranteed by the insurer that issues it, based on its claims-paying ability. It is not FDIC insured.
Qualified Roth payments aren't counted in your adjusted gross income. So they don't raise the income Medicare uses for IRMAA, its premium surcharge. They also don't raise the income that decides how much of your Social Security is taxed. The trade-off is that you pay tax up front when you convert. And lifetime income gives up flexibility with your money.
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The short version
- Your Roth IRA can be an annuity, or hold one. Lifetime payments from it are tax-free to you if they are qualified distributions.
- The same payments from a traditional IRA annuity would be fully taxable to you.
- Tax-free Roth income doesn't count toward your IRMAA or the tax on your Social Security.
- You can't buy a QLAC in a Roth, and a QLAC converted to a Roth stops being a QLAC.
- Your guarantees depend on the insurer. Lifetime income usually means less access to your money and less left for your heirs.
How does guaranteed income inside a Roth IRA work?
IRS Publication 590-A says a Roth IRA can be either an account or an annuity. So you can buy an annuity as your Roth IRA. Or you can buy one inside your Roth account, using money you've converted or contributed.
The annuity then pays you a set amount on a schedule, for life or for a set period. Under the Roth rules, a qualified distribution is free of federal tax and penalty. Your payment qualifies if your first Roth contribution was at least five tax years ago. You must also be 59½ or older (or disabled, or it goes to your heirs after death).
Say you're over 59½ but haven't met the five-year mark. The money you put in still comes out first and tax-free. Only the earnings part can be taxed. See The 5-year rules for the details.
How is annuity income taxed in a Roth vs other accounts?
The same annuity payment can be taxed three different ways. It depends on where you hold the annuity.
| Where the annuity is held | Federal tax on each payment | Counts toward IRMAA income? |
|---|---|---|
| Traditional IRA or 401(k) | All of it is ordinary income | Yes |
| Non-qualified (after-tax money, no IRA) | The earnings part is taxable; your cost comes back tax-free | The taxable part, yes |
| Roth IRA, qualified distribution | None under current law | No |
What kinds of annuities can provide income in a Roth?
Several kinds of annuity can sit in your Roth. They differ in how soon your income starts and how much access you keep.
- Immediate annuity (SPIA): you hand over a lump sum and your payments start within about a year. You usually have no cash value afterward.
- Deferred income annuity: your payments start at a future date you choose. You usually can't reach the money before then.
- Fixed or fixed index annuity with a lifetime withdrawal rider: you keep an account value and can withdraw a set amount for life. The NAIC notes these riders usually come at an extra cost.
- Fixed annuity you annuitize later: you build value first, then turn it into income.
What about a QLAC?
A QLAC (qualifying longevity annuity contract) lets you hold up to $210,000 (2026 limit, IRS Notice 2025-67) in a traditional IRA or plan out of RMDs. You can't buy one in a Roth, and a QLAC converted to a Roth is no longer treated as one. You have no owner RMDs in a Roth, so the QLAC rule isn't needed there.
Does tax-free Roth income affect Medicare premiums or Social Security tax?
Qualified Roth payments aren't taxable, so they aren't part of your adjusted gross income. IRMAA is the surcharge that can raise your Medicare premiums. Social Security defines the income used for it as adjusted gross income plus tax-exempt interest. So your qualified Roth payments don't count. See Roth conversions and IRMAA.
The same logic applies to the formula that decides how much of your Social Security benefit is taxed. Income from a traditional IRA annuity raises it. Qualified Roth income does not. Keep in mind your conversion itself counts as income in the year you do it. That can raise your IRMAA two years later.
Is it a mistake to put an annuity in a Roth?
It can be, and you should hear the argument. Many planners put their highest-growth investments, like stocks, in the Roth. That's because every dollar of growth there is tax-free forever. A lower-return, guaranteed product uses your tax-free space for slower growth.
Your heirs are the other issue. A Roth you leave to your children can grow tax-free for years under the 10-year rule. A life-only annuity stops paying when you die. You can choose a payout option with a refund or survivor benefit, but it pays you less each month.
The case for it is about you, not your heirs. Your main fear may be running out of money. If so, tax-free lifetime income that doesn't push up your Medicare premiums can be worth the trade. Many people do both: some guaranteed income, and the rest invested for growth.
Who should not buy a lifetime income annuity in a Roth?
A Roth income annuity may be a poor fit for you in these cases.
- Your pension and Social Security already cover your basic bills.
- You are in poor health and don't expect a long retirement.
- Your main goal for the Roth is a tax-free inheritance for your children.
- You need the money to stay available for large or surprise costs.
- You haven't yet paid the tax to convert, and would have to pay it from your IRA itself.
Example: $10,000 a year of lifetime income, Roth vs traditional IRA
Mary, 72, is single. She wants $10,000 a year of guaranteed income on top of Social Security and a small pension. Her other income puts her in the 12% federal bracket.
If the annuity is in her traditional IRA, each $10,000 is taxable, about $1,200 a year at 12%. It also adds $10,000 to the income Medicare and the Social Security tax formula look at.
Now say she had converted the money to a Roth earlier and buys the same annuity there. Then the $10,000 is tax-free and doesn't count toward IRMAA. She paid the tax up front when she converted. So the benefit depends on her tax rate then versus now, and on how long she lives.
If you, like Mary, want steady income that won't raise your tax or Medicare premiums, the Roth version can help. You just pay the tax first.
| Traditional IRA annuity | Roth IRA annuity | |
|---|---|---|
| Yearly income | $10,000 | $10,000 |
| Federal tax each year (12% bracket) | about $1,200 | $0 |
| Adds to IRMAA income | $10,000 | $0 |
| Tax paid when converted | None | Paid in the year of conversion |
Hypothetical example using a flat 12% federal rate. It ignores state tax and the extra tax that can apply when added income makes more Social Security taxable. Payout amounts depend on the insurer, your age and the option chosen. Not an offer.
Common questions
Is annuity income from a Roth IRA taxable?
Not if it's a qualified distribution: you're 59½ or older and your first Roth contribution was at least five tax years ago. That's under current law, which Congress can change.
Can I buy an annuity inside my Roth IRA?
Yes. Your Roth IRA can be an annuity, or your Roth account can buy one. Ask the insurer or custodian how your purchase is titled.
Can a QLAC be held in a Roth IRA?
No. QLAC rules apply to traditional IRAs and employer plans. A QLAC that is converted to a Roth is no longer treated as a QLAC.
Is guaranteed lifetime income really guaranteed?
Your payments are backed by the insurance company's financial strength and claims-paying ability. They are not FDIC insured. State guaranty associations provide limited coverage that varies by state.
Do I have to take RMDs from a Roth annuity?
No. Roth IRA owners have no required minimum distributions while alive. Your beneficiaries do have distribution rules after you die.
What happens to a Roth annuity when I die?
It depends on your payout option. A life-only option stops at your death. Options with a refund or a joint survivor pay something to your heirs, but they pay you less each month.
Does a Roth annuity add any tax deferral?
No. The Roth already makes qualified growth and payments tax-free. The annuity adds the income guarantee, not a tax benefit.
Sources
Facts on this page were last checked on November 9, 2026.
- IRS Publication 590-B, Distributions from IRAs · Qualified Roth distributions are not subject to tax or penalty; no owner RMDs for Roth IRAs. Read Nov 9, 2026.
- IRS Publication 590-A, Contributions to IRAs · A Roth IRA can be either an account or an annuity. Read Nov 9, 2026.
- IRS Notice 2025-67 (2026 retirement plan limits) · QLAC premium limit remains $210,000 for 2026. Read Nov 9, 2026.
- Treasury Regulation 1.401(a)(9)-6, paragraph (q) (QLACs) · A QLAC rolled over or converted to a Roth IRA is not treated as a QLAC after that date. Read Nov 9, 2026.
- SSA POMS HI 01101.010, Modified Adjusted Gross Income (MAGI) · IRMAA income is AGI plus tax-exempt interest, generally from two years prior. Read Nov 9, 2026.
- NAIC Buyer's Guide for Deferred Annuities, Fixed (2013), hosted by New Jersey DOBI · Guaranteed lifetime withdrawal benefit riders, usually at extra cost; payout options. Read Nov 9, 2026.
- FINRA: Annuities · Not FDIC insured; payments to a spouse depend on payout option. Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.