T-IRA Annuity RMD | Ed Slott and Company, LLC

T-IRA Annuity RMD

There have numerous posts regarding and annuities and IRA RMDs. I was unable to locate the following situation.

FACTS
T-IRA owner, >70.5 has an annuity in "pay" status. If understood correctly the IRA no longer exists as the IRA balance was used to purchase the annuity.
T-IRA owner has a separate IRA ("IRA #2") invested in mutual funds.

QUESTIONS:
Does the annuity "stream" count towards or satisfy the RMD?
How (if at all) does the annuity pay-out effect the RMD calculation for IRA #2 ( the 1st IRA not only doesn't exist but does have a previousl year's 12/31 account value)

Thank you in advance
Brian

Brian, for the year the immediate annuity was purchased ONLY, RMDs can be aggregated between the two IRA accounts because for that year only each IRA had a prior year end balance. After that each account stands on it's own, ie the  IRA annuity distribution will be the RMD for the annuity account only and the other IRA with the account balance will separately satisfy it's own RMD in the usual manner.

 

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