Ask Terry Questions Tax-deferred annuity

Tax-deferred annuity

By Terry Savage on January 17, 2024 | Financial Planning / Retirement

I’m 72 this year, 2024. I will need to take the Required Minimum Distribution (RMD) from an IRA soon. Is it a good investment strategy to move money from an IRA to a tax-deferred annuity (with beneficiaries), to reduce the RMD? All through Fidelity. I have chicken money.

Terry Says

Moving money into a tax-deferred annuity does not reduce your RMD — which you will take in 2025 when you turn age 73. That RMD is based on the total value of your IRA.
Don’t mess around with tax-deferred annuities at this stage of your life.



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