RMD on an annuity in an IRA

I have not kept current on whether the IRS ever issued firm guidance on annuitized IRAs. Here is my understanding:

There is no requirement to value an annuitized IRA on the 5498. The FMV on the 5498 would represent the value that would be used to determine the next year's RMD from IRA assets. Distributions from the annuity satisfy the RMD rules for the annuity.

I believe I got the correct answer today from a knowledgeable guy at the brokerage firm I used.

He told me the Dec 31st cash value of the IRA should be included in the amount used to calculate the total RMD. The reason it wasn't included on the brokerage firm's notice to me was because that firm is only acting as an agent for the life insurance company who issued the annuity. He told me that I probably will be receiving an RMD notice for that amount from the life insurance company, and if I don't I should calculate the RMD on it myself and withdraw it as a distribution to keep the IRS off my back.

Jeff

I don't know what kind of annuity is in your IRA. What I do know, is that if it is an annuity that had an irrevocable election to receive a guaranteed stream of income over a number of years, a lifetime, or a joint lifetime, the distribution made by the insurance company satisfies the RMD requirement of the annuity. This RMD is not computed like the other IRA RMDs are computed. Therefore, you can not add the two together to arrive at a combined RMD. You calculate an RMD on your other IRA assets using the value of those assets at the end of the prior year.

I thought I needed to clarify my answer. If the annuity meets the definition of an "Individual Retirement Annuity" defined in code section

Thanks Allan.

Jeff