Annuity in IRA – Minimum distribuations of annuity in excess of IRA RMD rules
What are the rules re: Lifetime annuities. Can we rollover the excess into a Roth IRA; do we need to separate payments into 2 distributions rather than one.
Jeff
What are the rules re: Lifetime annuities. Can we rollover the excess into a Roth IRA; do we need to separate payments into 2 distributions rather than one.
Jeff
Permalink Submitted by Alan - IRA critic on Fri, 2019-05-10 17:37
If an IRA has been annuitized for life or joint life with the beneficiary, the entire annual distribution is deemed to be the RMD for that account, so no part of the distribution is eligible for rollover. If not annuitized, then the excess of the RMD for that contract can be rolled over. If a taxpayer holds an annuitized IRA and a standard IRA, the RMDs must be satisfied separately, except for the initial year of annuitization when the annuitized amount had a prior year end balance.