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


Client, > 70/12 has a T-IRA inveted in a SPIA - This is his only IRA
Does income produced by the SPIA satisfy the annual RMD?

Is there anything else I need to be aware of?


Yes, the SPIA annual payout is deemed to be 100% RMD and therefore no part of it is eligible for rollover. One exception would exist if the SPIA was structured to include a period certain beyond the life expectancy which would reduce the annual payout. In that case, the distribution amount would fall short of the IRS required RMD amount. Is this SPIA being paid out based on either the client's single life expectancy or joint life expectancy with the beneficiary? 

How is the RMD determined? Thanks


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