Annuitized IRA payments count towards RMD?
I have a client who has annuitized an IRA (IRA #1). He has another IRA (IRA #2) that he has not pulled any money out of yet. His RMD for IRA #2 is $12,666.26 for this year. Will the annuitized payments from IRA #1 count towards satisfying his total RMD for the year? He is 76 years old.
Permalink Submitted by Alan - IRA critic on Thu, 2021-03-04 19:40
Only if IRA 1 was annuitized this year, and therefore had a year end balance on 12/31/2020. After the year of annuitization the IRA annuity payments are treated as the RMD for the annuity only, and non annuitized IRA accounts must satisfy their RMDs without considering the annuity payment.