Does this idea have merit?:

When one who is getting closer to life expectancy and is taking RMD’s from a beneficiary IRA, they should consider transferring the IRA to a SPIA.

Reasons:
1) Without doing this the RMD’s are based upon the person’s life expectancy when they first inherited the IRA. This is shorter than their current life expectancy which results in an RMD that is higher due to an artificially low life expectancy number.
2) All of the money will be removed from the account by the end of this low life expectancy, but they may live for many additional years.
3) Moving money to a SPIA will allow their payments to be based upon their new life expectancy instead of the original life expectancy.
4) The money will continue to pay out as long as the person is alive instead of just until they’ve hit life expectancy.
5) Depening on when this is done, the payout may be the same in the beginning, but the annuity will then have smaller payouts.

These advantages don’t exist in a regular IRA because in a regular IRA if one starts when they are 60 and now are 70 the RMD’s are based upon them being 70, just like the annuity would do. However, with a beneficiary IRA, the RMD is still based upon the life expectancy that a 60 year has.

Anyway, this is my first attempt of trying to think through this idea, so feedback, positive or negative, would be appreciated.