Can income from income rider satisfy RMD from other IRA accounts
I have a client who is receiving annual income from her IRA annuity with an income rider of $34,696 and her RMD for 2023 is $20,060. She has an RMD in 2023 of $991.17 for her IRA brokerage account. Since the income from the annuity far exceeds the RMD amount for the annuity and the brokerage account, does she still have the take the RMD from the brokerage account? I assume not since the income from the qualified annuity more than covers the RMD for both accounts. Please confirm. Thanks.
Permalink Submitted by Alan - IRA critic on Wed, 2023-10-04 17:48
You are correct. RMDs can be aggregated between owned IRA accounts. The 1099R Forms only need to add up to the total RMD. That said, if the IRA annuity has enough fringe benefits included the RMD for that account might require an addition to the year end cash value for RMD purposes, but the insurance company must confirm the value to be used by the end of January each year.