In the QLAC IRA market, an IRA owner may defer Required Minimum Distributions (RMDs) until age 85 on the lesser of $145,000 or 25% of the client's Traditional IRA holdings. The account balance is determined by which of the following: By taking the combined Traditional IRA balances as of December 31 st of the previous year, including distributions made in the current year. By taking the combined Traditional IRA balances as of December 31 st of the previous year, adding any additions and subtracting any distributions made in the current year prior to the contribution. By taking the combined Traditional IRA balances as of January ist of the current year in which the application is signed. By taking the combined Traditional IRA balances as of current month in which the application is signed, adding any additions and subtracting any distributions made in the current year prior to the contribution