RMD value for annuities with guarantees

Do know of any ruling by the IRS regarding RMDs from annuities with “guarantees”?

For example, if an IRA annuity has a market value of $100,000 and a guarantee value of $120,000, what is the basis to calculate the RMD, $100,000 or $120,000?

Further complicating the issue, sometimes annuities have more than one “guarantee”. For example, there can be a guarantee percentage increase each year and a guarantee of a high water mark on the anniversary date locking in an amount.



I am not an actuary, however the “actuarial present value” of the additional guarantees must be added to the AV. A normal guarantee of principle DB falls within a safe harbor and its cost does not have to be added.

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