RMD tax reporting when I surrender IRS annuity of $66.00.
I plan to surrender an IRA annuity with total value of $66.00. The RMD due is about $3.00 for 2018.
Can I apply the $66 to my total aggregated IRA amounts due for 2018?
Or will the $66 minus RMD of $3 be reported as ordinary income on a 1099?
Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2018-09-21 23:22
Sounds like you have other IRAs. Your 2018 total RMD can be satisfied by distributions from any of those IRAs. You did not indicate whether there will be a surrender charge for the IRA annuity. For example, if there is a surrender charge of $50 you will receive $16 and your 1099R will show $16 (the amount actually distributed to you), not $66. You can then credit the amount reported on the 1099R ($16) toward your total RMD for all your TIRA accounts.