Income annuity to replicate the stretch IRA
I have a client with a large IRA. He is widowed and has one son. If he did a joint and survivor annuity with his son as joint annuitant, would the income still be 100% assigned to him while he is alive?
I have a client with a large IRA. He is widowed and has one son. If he did a joint and survivor annuity with his son as joint annuitant, would the income still be 100% assigned to him while he is alive?
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-10 00:05
Yes. However, an SPIA annuity not already in force may need IRS Regs to determine what provisions are needed to comply with the Secure Act. Even under the current Regs, the amount the son would receive after death of the client would be capped based on their age difference.
Permalink Submitted by Bruce Steiner on Sat, 2020-01-11 23:41
He may want to consider leaving his IRA to his son in a charitable remainder trust. That will replicate the stretch.