Ask Terry Questions RMD’s and Annuities

RMD’s and Annuities

By Terry Savage on February 07, 2021 | Financial Planning / Retirement

Hi Terry, we are 68 years old; last year we started taking GLWB (guaranteed lifetime withdrawal benefit) distribution on a qualified variable annuity held in an IRA. we have two part question: a) if that distribution is greater than the RMD level (based on Account value at 72 years old), will we still need to take anymore distribution based on the value of the Account at that time? b) if the answer to ‘a’ is no additional distribution is required, then can we use any of the ‘excess’ (distribution is > RMD) from that account to help meet RMD’s for our other, non annuity, traditional IRA’s?

Terry Says

Since the annuity is held inside an IRA, the RMDs can be taken from ANY account. So you might be getting more than needed (or less) in your distributi8on from that IRA. So it could actually offset the need to take more from another account. Or if it is less than the total RMD, you can take more from another IRA.

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