RMD from IRA annuity w/GMIB
Client has an annuity who’s GMIB Income Base is higher, by 23K, than his actual account value. He has to take 1st RMD this year. I know this subject was covered in 2009 posting, but I was wondering if there is any updated information on this subject or more detail on calculating the appropriate RMD amount.
Thanks!!
Permalink Submitted by Alan Spross on Thu, 2012-02-09 03:28
Am not aware of any updates to the attached analysis by the SOAs. GMIB would be included in the 120% additional actuarial value exemption under Q&A 12 in the IRS Reg, but the insuror is going to have to supply the actuarial analysis and the RMD figure. That said, industry innovation will probably leap ahead of IRS RMD interpretations and that will result in insurors having to make some of their own assumptions since they still have to calculate the RMD:
http://www.soa.org/files/pdf/APV%20Calculation%20combined.pdf