What does RMD-friendly mean with annuities? This is an essential question for retirees looking to purchase an annuity. You must take minimum distributions from your retirement accounts when you reach retirement age. If you have an annuity, you want to ensure it is RMD-friendly so that you can take those distributions without penalty. This guide will discuss what RMD-friendly means and how to find annuities that fit these criteria.
What Does RMD-Friendly Mean?
When you reach age 73, the IRS requires that you take minimum distributions from your retirement accounts. If you have an annuity, you want to make sure that it is RMD friendly so that you can take those distributions without penalty. An RMD-friendly annuity means that the account holder will not be subject to penalties for taking required minimum distributions at any time.
Which Annuities are RMD-Friendly?
There are a few different types of annuities that can be RMD-friendly. One type is an immediate annuity, which begins making payments to the account holder as soon as it is purchased. Another type is a deferred annuity, which allows the account holder to defer taking distributions until a later date. Finally, there are variable annuities, which offer the account holder a variable rate of return.
Which Annuities Are Not RMD-Friendly?
A non-qualified annuity is funded with money that has already been taxed. Non-qualified annuities are not RMD-Friendly because they are not held in a qualified retirement account, and minimum distributions are not required.
When you are looking for an RMD-friendly annuity, it is important to compare different options and find the one that best suits your needs. You should also contact us to make sure that an annuity is a right investment for you. With the right annuity, you can enjoy a worry-free retirement.
If you are interested in purchasing an annuity, we can help. We offer a variety of annuities that can meet your needs. Contact us today to learn more about our products and services. We would be happy to answer any questions you have and help you find the right annuity for your retirement.
Thank you for reading! We hope this guide was helpful in understanding what RMD friendly means with annuities. Contact us today to learn more about our products and services. We look forward to helping you secure a comfortable retirement.
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- RMD Table 2023