RMD – accumualted values of a brokerage IRA and an annuity
My client has an IRA with traditional investments: mutual funds, bonds, etc AND an IRA annuity, which is not currently being annuitized. She turned 70 1/2 in 2014, and has been taking distributions from her IRA for awhile. Her distributions have exceeded the RMD required for both the IRA annuity and the traditional IRA for 2014 and will probably exceed the RMD for 2015 as well. Question is, does she still need to take a distribution from the annuity?
Permalink Submitted by Alan - IRA critic on Wed, 2015-03-04 19:12
Not under the IRA RMD aggregation rules. The RMD can be satisfied in any combination from owned IRA accounts and has therefore been completed. If the IRA annuity is ever annuitized, then aggregation will end and the annuity distribution will only satisfy the annuity RMD.
Permalink Submitted by Rene Nourse on Wed, 2015-03-04 20:14
Thank you!