does annuity income count as RMD of the IRA
Dear All:
I am wondering if a client purchased annuity from the IRA account and starts to get the life time income, does the life time income count as RMD? How to calculate the RMD for a IRA with annuity like this,especially when the cash value decreases to zero?
Best,
Lian
Permalink Submitted by Alan - IRA critic on Sat, 2023-12-09 14:49
The insurance company must provide the RMD for the annuity which is added to the RMD for any other owned IRA accounts. All distributions from the annuity or the other IRAs then count toward meeting the total RMD. The value used by the insurance company to determine the annuity RMD may include the value of fringe benefits, such as when the cash value of the annuity has diminished.