Starting in 2023, you can combine the value of both annuitized and non-annuitized IRA accounts and calculate your total RMD based on your life expectancy. Then, subtract the annual annuity payments from the total RMD. This change can result in significantly reduced RMDs. There are at least 2 similar examples that walk through the calculation here:
1. greenleaftrust.com/missives/rmds-and-annuities/
2. missionwealth.com/hidden-secure-act-provisions/
I am using TurboTax 2023 Premier on a MacBook. I have 4 IRAs and one qualified annuity (fixed and lifetime). All 4 IRA accounts are all starting RMD distribution this year (2024). The annuity will start payouts March 2024. I will not have to use this calculation until my 2024 income tax return next year, I still have to let my advisor now to ensure the IRA RMDs paid are reduced in 2024.
Does TurboTax (TT) support this relatively new calculation for integrating IRAs and qualified annuities in TT 2023 yet, or will it be in TT 2024? If it’s in TT 2023 I can’t find any trace of it. Do you know how that calculation can be made manually in the forms that TT uses (1040, 8606, other)?
Thank you
