One thought on “What about RMDs in the year in which I buy my annuity?

  1. Arti says:

    There are two reasons for this: There are two reasons for this: There are two reasons for this: There are two reasons for this: There are two reasons for this: In the year in which you buy your immediate annuity you do have a unique obligation to calculate RMDs. In the year in which you buy your immediate annuity you do have a unique obligation to calculate RMDs. While you won’t have to calculate RMDs with respect to the premium that you spent on your annuity in all other years, in the year in which you buy your annuity, however, you must be sure there’s no shortfall in the RMD. 5% from your IRAs upon reaching age of 70-½. The IRS requires you to begin withdrawing around 3. The Treasury Inspector General recently reported that as many as 250,000 tax payers fail each year to withdraw the required amount from their IRAs. Failure to do so can result in steep penalties, as high as 50%. The most important thing to do is accurately track all of your IRA accounts at various firms. Currently, the IRS can assess a penalty as high as 50% of the amount that should have been taken out. Currently, the IRS can assess a penalty as high as 50% of the amoun

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