Non-Spouse Beneficial IRA (annuity)
Good Afternoon
Does a non-spouse beneficiary have diferent options if the T-IRA was invested in an annuity (i.e. lump sum, term certain, etc)? Is the “stretch” available? If so how are the RMDs calculated?
Thank you!
Permalink Submitted by Alan - IRA critic on Fri, 2013-05-31 21:54
If the annuity had not been annuitized, the RMD options are the same as a non annuity. Some insurors allow the beneficiary to annuitize the account subject to IRS Regs that limit longer stretch periods than normal. For an IRA annuity that the owner had annuitized, there is often a term certain that continues for a certain period for the beneficiary. Of course, there would be nothing to inherit if the owner elected a life only annuity. IRA annuity owners should inquire about the beneficiary options existing on their annuity.