RMD

By Terry Savage on September 20, 2022 | Financial Planning / Retirement

WE HAVE A SINGLE PREMIUM DEFERRED ANNUITY. I AM THE ANNUITANT (67 YRS OLD) AND MY HUSBAND IS THE JOINT OWNER (72 YEARS OLD). WE’VE GOTTEN INFO FOR RMD FOR MY HUSBANDS 2 IRAS AND 1 ANNUITY IN HIS NAME. ARE WE SUPPOSED TO TAKE RMD FOR THE ANNUITY THAT I AM PRIMARY ANNUITANT OR CAN WE WAIT TILL I TURN 72? WE GOT INFO FOR THE OTHER 3 ACCOUNTS AND HAVE TAKEN THE RMD FOR EACH. WANT TO AVOID A PENALTY IF WE NEED TO COLLECT NOW. THANKS.

Terry Says

Wait, you can’t be the annuitant on an annuity purchased by HIS IRA!!~ That’s just not possible. And an annuity purchased inside his IRA (and requiring a RMD) cant be in joint name! You may be a secondary beneficiary, but not a joint owner of an annuity purchased in his IRA. Check it out immediately!

If you are an annuitant on your own IRA annuity, you don’t have to take withdrawals until the year you reach age 70.

Since your husband is already 70, if he has an annuity in his IRA it’s value must be included — but he can take the RMD money out of other assets in his IRA. But there might be some valid reasons for withdrawing from the annuity, depending on its terms.

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