Qualified income annuity to satisfy RMDs
Hi Terry, I am at least 4 years of from having to take my RMDs. Yearly I have been converting money from my tradionation IRA to a Roth. But it wont be enough to offset the high RMD i will have to pay out. I am wondering what your thoughts are on purchasing a qualify income annuity to satisfy my RMD when the time comes? Pros and cons ?
I would appreciate your expert opinion.
Terry Says
Why pay the fees for an annuity? You have to take withdrawals, based on the year end value of all your retirement accounts. Do the calculation, pay the taxes, and be glad you have the money!
OR, convert more now, pay the taxes now, and you won’t have to take RMDs.
You might use this as a guide: https://www.terrysavage.com/roth-conversions-2/
