RMD from Beneficiary IRA question
Scenario: Person inherits an IRA and it becomes a Beneficiary IRA, the beneficiary decides to have 50% of the money in an annuity and the other 50% in liquid funds. Can all of the RMDs come out of the liquid funds (while the annuity does not get touched). I’m thinking the answer is “yes”.
Permalink Submitted by Al Fry on Wed, 2008-04-30 01:29
That is correct. However the insurance company needs to provide the annuity year-end value if the annuity has any extra living or death benefits (other than the standard ROP (Return of Premium)). In some cases the RMD value can be slightly higher than the account value if these additional benefits are included with the annuity.