IRA
can you purchase fixed indexed annuity with IRA money? is this counted towards RMD? How infuture you account annuity account for RMD? If there is death balance or insurance paid to IRA or beneficiary.
can you purchase fixed indexed annuity with IRA money? is this counted towards RMD? How infuture you account annuity account for RMD? If there is death balance or insurance paid to IRA or beneficiary.
Permalink Submitted by PaulC on Tue, 2024-04-02 14:58
Yes, a fixed indexed annuity can be held within an IRA. The balance of the IRA FIA counts towards determining the amount of any applicable RMD. FIA contracts generally allow for RMDs to be taken from the FIA without fee or penalty, meaning surrender charge free. Since IRA balances are aggregated for purposes of RMDs, the FIA portion for the RMD could be paid from other IRAs, if available, and that’s desired. FIAs can have a death benefit, but it’s not considered insurance. The tax nature of a death benefit passed to beneficiaries would be the same as that of the IRA. It’s not tax free like a life insurance death benefit.