IRA Annuity RMDs
If an IRA annuity payout comes to more than the RMD for the annuity in a given year, can the amount paid out that is over be used to reduce the RMD taken from a separate traditional IRA?
If an IRA annuity payout comes to more than the RMD for the annuity in a given year, can the amount paid out that is over be used to reduce the RMD taken from a separate traditional IRA?
Permalink Submitted by Alan - IRA critic on Thu, 2017-07-06 00:31
Only in the year the IRA annuity is annuitized, because that account did have a prior year end balance on which to calculate the RMD. For later years, the annuitized IRA payouts become the RMD for the annuity only and the other IRA accounts must distribute their own RMD. In other words, aggregation of the RMDs ceases in the year following the year of annuitization when the account balance is paid to the insurance company to fund the annuity payments.