IRA annuity and RMDs
Client has a traditional IRA and an IRA annuity. Client turned 70-1/2 this year. He does not want to start taking distributions from the annuity yet. Can he take a distribtuion from the traditional IRA large enough to cover the RMDs for both accounts and let the annuity keep growing?
Thank you,
Permalink Submitted by Alan - IRA critic on Thu, 2013-12-12 15:59
Yes, as long as the annuity in not annuitized, it has a year end balance. The RMDs can be aggregated with other non annuity IRA accounts.
Permalink Submitted by Arthur Dicker on Thu, 2013-12-12 19:09
Can client roll the IRA annuity to a traditional IRA account?
Permalink Submitted by Alan - IRA critic on Thu, 2013-12-12 19:38
If the client wants to surrender the annuity, the funds can be transferred from a TIRA annuity to a TIRA.