Permalink Submitted by Alan - IRA critic on Fri, 2018-01-12 22:18
The IRA DIA is treated like a standard IRA since it has a year end balance before it is annuitized. But there is one difference – if the IRA DIA has a large amount of fringe benefits added to it, generally those other than enhanced death benefits, the value of those fringe benefits must be added to the year end balance. This is complex and in almost all cases only the life insurance company can figure it and provide you with the RMD for the DIA RMD. Most such annuity benefits are modest enough such that the RMD is not increased, but only the custodian can confirm that. Once you know the RMD for that IRA contract, you can still aggregate the RMD with other non annuity IRAs you have.
A QLAC premium is exempt from RMDs until it goes into distribution phase around age 85. So your RMDs are reduced until 85, then they are increased thereafter when the QLAC begins payouts.
Permalink Submitted by Alan - IRA critic on Fri, 2018-01-12 22:18