RMD Question
I have a client with a traditional IRA, an IRA variable annuity and he’s over 70 ½ taking RMD’s. Somewhere along the way I heard:
The RMD from the annuity should be calculated by the insurance company?
And he should take the annuity RMD and the Trad IRA RMD separately?
He’s getting conflicting information so you help address these two questions?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2018-05-03 15:14
The insurance company should provide the amount of the RMD for the IRA annuity. In some cases it will be higher than the RMD calculated from the cash value due to certain fringe benefits that exceed certain amounts. Once the RMD figure is provided, the client can satisfy the RMD in any combination between the IRA annuity and other IRAs. He does not have to take the IRA annuity RMD from the IRA annuity unless the IRA annuity has been annuitized,