• TV Show
      YouTube
      IRA Blog
      Weekly Market Commentary
      Weekly Newsletter
      Medicare Blogs

      Featured

      Retire Smart Austin Banner
      Read More

      What's New

      2-4-financial
      If you’re nearing retirement, these 2025 changes could affect your finances. Here’s what to know
      Key Points If you’re nearing retirement, key changes for 2025 could affect your finances, according to...
      1-28-25-financial
      A Checklist for Retiring in 2025
      Our checklist for retiring next year includes everything you need to do before the retirement party....
  • Events
  • Form CRS
  • Contact

RMDS FOR ANNUITIES AND SPOUSAL BENEFICIARY RULES: TODAY’S SLOTT REPORT MAILBAG

January 30th, 2025

By Ian Berger, JD

IRA Analyst

Question:

I have an IRA holding an immediate annuity as well as other IRAs. With the passage of the SECURE 2.0 Act, l understand that I may be able to apply my monthly annuity payments against my RMD requirement for all of my IRAs. The only valuation I can get on my annuity is the year-end fair market value. Can you provide any update to any IRS ruling on this?

Tom

Answer:

Hi Tom,

Your understanding of the SECURE 2.0 provision is correct. The IRS confirmed this in regulations issued last July. Since you have a year-end valuation of the annuity from the insurance company, you can take advantage of this rule. For 2025, first calculate the total RMD of all of your IRAs (using 12/31/24 values divided by your life expectancy under the IRS Uniform Lifetime Table). Then, you will only need to take RMDs from your non-annuity IRAs equal to that total RMD minus the sum of your monthly annuity payments.

Question:

In a previous answer to a question submitted to the Slott Report Mailbag, you said section 327 of the SECURE 2.0 Act applies to an IRA inherited by a spouse beneficiary. I thought that these new rules for spouse beneficiaries only apply to spouse beneficiaries of employer plans and not  IRAs. Is this true?

Answer:

No, the IRS has made clear that the section 327 rules apply to spouse beneficiaries of both employer plans and IRAs.

RMDS FOR ANNUITIES AND SPOUSAL BENEFICIARY RULES: TODAY’S SLOTT REPORT MAILBAG