assets included in RMD calc
Client annuitized an IRA annuity last Dec. First payment started in Jan 2013. Does the contract value annuitized in Dec count as an asset in doing RMD calculations?
Second question: does the monthly annuity payments count as RMD payments to be applied against client’s total RMD requirement? ie client has other IRA assets, and can the annuity payments cover RMD’s on those assets as well?
Thanks.
Permalink Submitted by Alan - IRA critic on Wed, 2013-12-11 23:42
As of 12/31/2012 the annuitized IRA no longer has an account balance. Starting in 2013, the annuitized IRA distribution will meet the RMD requirement of that account only, and the other IRA account RMDs are figured separately in the usual manner. In other words, one cannot cover for the other.