Inherited IRA and Annuity
I have just heard that effective fairly recently, you cannot own an annuity within an INHERITED IRA. Can anyone confirm this and the rationale?
It seems that an annuity with enhanced living and / or death benefits would be a good tool to use within retirement plans. I assume they can still be held in non inherited retirement plans like Roth’s, Rollovers, SEP’s etc….
Permalink Submitted by Al Fry on Tue, 2009-08-11 00:01
Some Companies do not allow annuities in inherited IRAs. Many do. Most all guaranteed withdrawal benefits are not “RMD Friendly” for inherited IRAs, as the RMDs are much higher than for owner IRAs. Therefore many companies will not allow these benefits on inherited IRAs.