IRA Annuity
Client has a regular IRA. He buys an annuity with a lifetime income rider. Lets say he is 71 and his rmds go for 27 years. At the end of 27 years the IRA value is zero but he is still alive. The insurance company rider now pays the promised annuity. Is this a problem for the IRA holder or the insurance company issuing the policy? Or for dealing with the IRS?
Permalink Submitted by Alan - IRA critic on Tue, 2014-05-13 20:44
IRS Regs have not been written for many of the recent annuity innovations. So I can only guess that once the IRA has no year end value remaining, then there is no longer an RMD due for that particular IRA account.