Annuitized IRA and the 10 year rule
I have a client that annuitized an IRA. They took a single life payout with a 20 year period certain. Should they die with 15 years left on the period certain, does the beneficiary receive payments over 15 years, or does it default to the ten year rule somehow? Assume a non-spouse beneficiary with no known exception.
Permalink Submitted by Alan - IRA critic on Thu, 2022-04-21 15:50
The beneficiary gets payments for the remainder of the 20 year period certain if the IRA annuity contract was in effect on 12/20/2019, the date of the Secure Act enactment. Otherwise, the 10 year rule will limit the distribution period. See proposed Secure Regs, p 9, and of course these are still proposed, not final.