Someone mentioned to me the notion that somehow (Tax court, perhaps, but I was unable to find an opinion on the subject) the RMD requirement has been waived for annuities.
Has anyone heard anything about that?
Thanks.
RMD Requirement for Annuities
Jul 18, 2014
6 Replies
I assume we're talking about a "qualified" annuity that is part of an IRA or qualified plan. I don't think the RMD requirement is "waived," but it can be computed under accepted annuity/actuarial principles, rather than strictly by the IRS table.
MTW
Right. The IRS gives three methods to calculate withdrawals, and if you use one of those you are OK. But you can use another one that is actuarialy sound.
That's been the rule. But someone indicated to me that may have changed. I haven't been able to find anything on it - perhaps they misunderstood something else.
Thanks.
Final treasury rule (longevity annuities) is explained in the following Forbes article:
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US Treasury Press release:
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Final Regs published July 2, 2014:
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Thanks, Alan!
I don't know if this is what was being referenced, but I'm told Treasury has released final regulations regarding the use of Longevity Annuity Contracts in defined contribution plans. It appears the text of the reg. can be found at:
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Hope this helps.
Thanks. I'll check it out.
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