Income Rider RMD
I have a client who turned on her income rider. That income exceeds her RMD amount for her annuity. Can that extra income above her RMD amount that is coming from the income rider satisfy her RMD for another IRA account?
I have a client who turned on her income rider. That income exceeds her RMD amount for her annuity. Can that extra income above her RMD amount that is coming from the income rider satisfy her RMD for another IRA account?
Permalink Submitted by Alan - IRA critic on Tue, 2023-07-25 15:43
Yes. For owners of more than one IRA, a distribution from any of them that have not been annuitized is applied against the total RMD amount for all of them. Therefore, the client needs to know the RMD for each IRA account in order to determine the total RMD. An IRA annuity that has not actually been annuitized with large fringe benefits might require an additional amount to be added to the prior year end balance to determine the IRA annuity RMD. The insurance company should provide the amount of that RMD by the end of January in the RMD year. In any RMD year no amount can be rolled over until the total RMDs for all IRAs have been completed.