Permalink Submitted by Al Fry on Wed, 2008-08-20 22:59
Yes, and they are calculated the same way an IRA bene RMD would be calculated. Two major differences: For a stretch, the first RMD must be paid out within 12 months from the date of death. Secondly, the 5-year deferral option (non-stretch) is always available, since there is no RBD for the owner.
Permalink Submitted by Duane Randolph on Thu, 2008-08-21 15:16
Thank You Alfry.
I will be on a conference call for more information next week. I am asking for any insight on the following. The NQ varaible annuity currently has Son E as Owner and Dad H as Annuitant. I believe it is annuitant driven.
The problem is Dad H passed away four+ years ago and the issuing company has yet to be notified of his death which will trigger a death claim. No RMD’s have been taken to date.
I am guessing that Son E ‘s beneficiary status will supersede as guidence for any taxes and penalties for the untaken RMD’s ,although he may have a choice to empty the account. (5 year rule ) Correct? The money involved is 12K, but I don’t know the death claim amount yet. Any insight or suggestions? Any value as Owner for Son E?
Permalink Submitted by Al Fry on Wed, 2008-08-20 22:59
Yes, and they are calculated the same way an IRA bene RMD would be calculated. Two major differences: For a stretch, the first RMD must be paid out within 12 months from the date of death. Secondly, the 5-year deferral option (non-stretch) is always available, since there is no RBD for the owner.
Permalink Submitted by Duane Randolph on Thu, 2008-08-21 15:16
Thank You Alfry.
I will be on a conference call for more information next week. I am asking for any insight on the following. The NQ varaible annuity currently has Son E as Owner and Dad H as Annuitant. I believe it is annuitant driven.
The problem is Dad H passed away four+ years ago and the issuing company has yet to be notified of his death which will trigger a death claim. No RMD’s have been taken to date.
I am guessing that Son E ‘s beneficiary status will supersede as guidence for any taxes and penalties for the untaken RMD’s ,although he may have a choice to empty the account. (5 year rule ) Correct? The money involved is 12K, but I don’t know the death claim amount yet. Any insight or suggestions? Any value as Owner for Son E?
Permalink Submitted by Al Fry on Thu, 2008-08-21 21:51
I think he is caught in the 5-year deferral.