multiple IRAs with one immediate
I have 4 separate IRA accounts subject to RMD. Can I annuitize one account to take care of the total RMD requirement?
I have 4 separate IRA accounts subject to RMD. Can I annuitize one account to take care of the total RMD requirement?
Permalink Submitted by Alan - IRA critic on Fri, 2021-12-24 19:21
It depends on the size of the accounts and when in the year you annuitize. If you are subject to RMDs, in the year you annuitize a portion of your total balance there was prior year end balance for all the accounts from which to calculate your RMD. Subtract from that RMD the dollar amount of annuity payments that will be paid that year and the balance is the rest of your RMD that you must withdraw from any combination of the non annuitized accounts. In subsequent years, the annuity IRA distributions only satisfy the RMD for the annuity, and the other accounts separately satisfy their RMDs in the usual manner.