Hi,

Client has an annuity that has a death benefit dramatically larger than the actual cash value in the account. Because of the death benefit in the contract, the RMD number is significantly higher than what it would be if based solely on the actual cash value. And this problem will get worse in future years, as the higher RMD amount is pushing down the cash value while the death benefit continues to grow.

The insurance company says I can do a roth conversion. If I do that, what is the conversion amount? Is it the actual cash value, the RMD amount, the death benefit amount, or some other number that I have no idea how to calculate?

To put some numbers to this, the actual cash value is $13,000, the death benefit is $300,000 and the RMD is $8,000.

Thanks.