Annuitize an IRA at death
Is it possible for a Non Eligible Designated Beneficiary to annuitize IRA account balance after the account owner’s death, thereby essentially stretching the IRA and making the account balance equal zero? If so, can they annuitize a portion and withdraw the balance within 10 years?
Permalink Submitted by Alan - IRA critic on Sat, 2020-02-29 00:07
Not allowed. The IRA owner can annuitize and the beneficiary can inherit an annuitized IRA, but the beneficiary cannot themselves annuitize an IRA. And even if that would have been allowed in the past, it would totally conflict with the intent of the Secure Act, which is to limit DBs to 10 years. An EDB would not be able to annuitize either, but in their case the LE RMDs would not be much different.