If one annuitizes a VA annuity in their IRA, no more RMD???
Maybe I am just over-thinking it.
I was told if a client annuitizes his VA inside his IRA, the IRA ceases to exist as does the RMD’s……….
In effect, he’s turning the contract into a form of SPIA, right??
Permalink Submitted by Al Fry on Mon, 2008-01-28 20:32
A SPIA is an annuity annuitized within 12 months of original issue. Once an IRA annuity is annuitized, RMDs are no longer required, except for the year annuitized. It is still an IRA, however. If the annuity is held as an investment in a self-directed IRA, RMDs are stiill required out of the IRA, since the annuitized payments stay within the IRA.