Can I 10 year period certain IRA annuity payout satisfy RMD in other IRA?

Submitted by karin Tyson on Fri, 2017-11-10 22:02

My client is a new widow. Her dob is 4/1946. Her husband’s DOB Jan 1945 and he had a 10 year period certain IRA annuity that will continue to pay out to her as spousal beneficiary for another 3 years until the full 10 years has been satisfied. Will this period certain annuity payout satisfy her RMD on the other IRA she inherited from her husband or will she need to take RMD’s for that as well. By the way, her period certain IRA no longer has a 12/31 balance since it is in the payout mode.



Submitted by karin Tyson on Fri, 2017-11-17 14:07

Does anyone know the answer to this one I asked last week?

Submitted by Alan - IRA critic on Fri, 2017-11-17 20:22

The annuitized contract cannot satisfy the RMD for another account because the annuity is not being paid out under the life expectancy of the surviving spouse. And the surviving spouse cannot roll over any of the annuity payments because they are considered to be RMDs. However, if the other inherited IRA is not annuitized the spouse can roll it over to her own IRA after completing the year of death RMD for deceased spouse. That will reduce her future RMDs because she will be using the Uniform Table. 

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