RMD details
I currently have several IRA’s in a few custodians. But also I have an IRA annuity which distributes to me monthly for life but of course I pay taxes on these distributions.
My question is when my age reaches 70 1/2 do I get credit for my current IRA distributions as part of my “RMD total” when adding all of my IRA’s—so as to lower the amount I have to remove from IRA’s???
Permalink Submitted by Alan Spross on Thu, 2012-05-03 19:50
Once you reach 70.5, the annuity payments satisfy your RMD for the annuity account only. Your other IRAs have a year end account balance and you can aggregate the rest of your RMDs between those accounts with account balances in any combination you wish.
But your annuity IRA no longer has an account balance from which to calculate RMDs in the usual manner and that is why is becomes a totally separate account with respect to RMD calculations.
Another thing to know about the annuity payments are that you cannot roll any portion of them over to your other IRAs because they are considered RMDs EVEN THOUGH you are not yet 70.5. When you start a life annuity (or most modifications including a joint life annuity), your required beginning date for that contract is the day you receive your first payment and the payment is considered an RMD and therefore cannot be rolled over.