Can qualified annuity income from income rider that exceeds the RMD be applied to another IRA RMD’s?
I have a client who turned on her income rider in her Prudential VA IRA a couple years. That income exceeds her RMD amount for her annuity. Can that extra income above her RMD amount that is coming from the income rider satisfy her RMD for another IRA account? I don’t think she can, but wanted to check with you to be sure.
Permalink Submitted by Alan - IRA critic on Fri, 2022-11-18 23:56
Client has not annuitized, and there is still a year end cash balance in the IRA annuity. As such the IRS stlll considers the annuity eligible for RMD aggregation with other IRA accounts. That said, these IRA annuities with many confusing fringe benefits are subject to IRS rules for determining the RMD for the annuity, and only the insurance company can determine what the annual RMD is. Once the company discloses what the RMD is, any amount distributed from the annuity in excess of that RMD can be applied against the RMD for other IRA accounts.