stretching non qualified annuity
individuals father died in 2020 and left her as beneficiary of a non qualified annuity with significant gains. There is an annuity carrier that will stretch non qualified annuities over beneficiaries life expectancy. Does she need to take RMD by 12-31-2021 in order to be able to maintain stretch option vs 5 yr distribution requirement?
Permalink Submitted by Alan - IRA critic on Fri, 2021-12-03 02:37
For a NQ annuity the first stretch distribution must occur within 1 year of the actual DOD, not by the end of the following year. She needs to call the insurance company to determine what her options are now.