Client purchased an annuity for $350,000 from his SEP IRA. He began receiving annuity payments at 70.5 years of age. Each year he receives a letter stating how much his RMD is for the upcoming year. The RMD is approx $15000; total payment is $35000.

For 2020, can the payment be rolled over into the brokerage account that is part of the plan? He normally treats the excess of the annuity payment over the RMD for the annuity as meeting the RMD for the brokerage account. Is this OK?