Satisfying Annuity RMD with inherited Spousal IRAs
Upon the death of my wife in July 2011, I transferred an annuity contract she owned to my name. I was the sole beneficiary on the contract. It has an RMD of $10,000 that needs to be taken. Can I satisfy this requirement by taking the amount out of inherited spousal IRAs and leave this annuity contract intact?
Permalink Submitted by Alan Spross on Wed, 2011-10-26 01:11
While you are referring to an annuity RMD, I am not sure whether this is an IRA Annuity or a non qualified annuity. If it is an IRA annuity, have you assumed ownership or titled it in beneficiary form?
Most spousal survivors assume ownership or roll over IRA accounts inherited from their spouse. You can aggregate IRA RMDs over accounts inherited from the same decedent, or with IRA accounts for which you are the owner. But you cannot aggregate RMDs between IRAs maintained as inherited with those that are treated as owned. And you cannot aggregate any IRA RMDs with non qualified annuity distributions required under state law.