Annuity IRA RMDs effect on other IRA RMDs
How are the RMDs effected on other IRAs if you have an income annuity, and only use the income rider and never annuitize that annuity? My question has 2 parts.
1. When the cash value or accumulation account has more that the distribution amount and it is greater than the RMD required for that IRA annuity can that be part or all of the aggregate be applied to the other IRA RMDs?
2. Once the guaranteed Income in the IRA annuity with the income rider distribution exceed the remaining cash or accumulation balance or that balance has gone to zero in that IRA Annuity how does that effect the RMD Aggregate for the other IRAs?
Thank you for your help.
Permalink Submitted by Alan - IRA critic on Fri, 2019-02-01 01:30
If the annuity IRA has not been annuitized, it is still treated as an IRA account with a year end balance, and the RMD can be aggregated with that of other IRA accounts. That said, there are complex rules in determining what the RMD is for the annuity IRA as the value of certain fringe benefits may need to be calculated. This needs to be done by the insurance company and provided to the IRA annuity owner. Some benefits are excluded from this calculation.