RMD for annuity in an IRA
Is the RMD for an annuity within an IRA calculated the same way as for a brokerage or bank account? Can the RMD from an annuity be added to other accounts and taken out of just one of the accounts or does the annuity payment have to be distributed from the annuity?
Permalink Submitted by Alan - IRA critic on Thu, 2021-10-21 19:55
It depends on whether the annuity IRA has been annuitized or not. Most are not. The RMD for a non annuitized annuity IRA must be calculated by the insurance company if it includes certain fringe benefits that would be treated as increasing the cash value of the annuity. But once the correct RMD is known, it can be taken from other IRA accounts under the usual RMD aggregation rules for IRAs.