IRA Annuity
When considering distributions from an inherited qualified IRA Annuity, do the IRS distribution rules for the IRA supersede those of the Annuity? i.e…. 10 rule for IRA drain vs. 5 Yr for Annuity? Also, 4 beneficiaries would most likely open their own beneficiary IRA’s to spilt,.. could the Annuity company disallow the split and force a lump sum distribution?
Permalink Submitted by Alan - IRA critic on Mon, 2022-01-17 19:32
Yes, IRS IRA distribution rules and RMD rules apply, but the life insurance custodian could adopt more restrictions. Most IRA annuity purchases fail to inquire about the distribution options the company will allow to their beneficiaries.