Ask Terry Questions Tax Deferred Annuity RMD

Tax Deferred Annuity RMD

By Terry Savage on December 12, 2023 | Insurance & Annuities

My wife has a TDA with Mutual of America. Are RMD calculations for this type of retirement account done differently than IRAs or 401(k)s? If so, how?

Terry Says

If the Annuity is held inside an IRA, the cash value of it at the end of the preceding year is used to total up all her IRA assets, upon which the RMD is based.
If she is actually receiving money, perhaps on a monthly basis, from this annuity owned by her IRA, then these distributions can be considered as part of her total RMD.
Make sure you understand exactly how her annuity account is titled, and whether it is a ‘non-qualified’account (ie NOT in her IRA, but just growing money on a tax-deferred basis) or a “qualified” account — part of her retirement account.

Get the information from the annuity company and show it, and the title of the account. to your tax advisor.



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