AmyC
I'm sorry, I was and I'm still somewhat confused.
I don't see how companies (financial and insurance) can "bend" the IRA RMD = FMV/divisor is calculated. And I realize IRAs it can be calculated one each or all at once; and the result is same. But not so much with annuities.
Here's the calculation I refer to above, and some background on this.
My annuity was purchased from money in one of the IRAs, so the annuity is qualified. The annuity has a so-called Total Purchase Payment (TPP and the cost). The insurance company said they would set an FMV (as of 31Dec). So, I assume that FMV will be close to or equal to the TPP. If I divide TPP by my divisor from the Uniform Lifetime Table (ULT), I get a number I refer to as aRMD (annuity RMD). aRMD is $9000 (diff) less than the total payout of the annuity in 2024. Then I calculate the RMD for the 4 IRAs by dividing the sum of the 4 IRAs FMV (31Dec2023) using my divisor from the ULT. Call that iraRMD. Then the new calculation (a result in 2023 after more changes to Secure 2.0) says to substract the $9000 from iraRMD and add the annual annuity payoff, and the outcome is an RMD number that integrates all 5 accounts (4 IRAs and 1 annuity).
My understanding from reading a number of financial advisors is that in 2022 or 2023 Congress revised some rules in Secure 2.0 that also told IRS to fix issues with annuities and IRAs (that have been an irritation to annuity owners and insurance companies that sell them).
My question is:
How do I report my IRAs and annuities through TurboTax or on the IRS Forms without being penalized for failing to take another $9000?
Secure 2.0, IRS, and Congress together have not yet stabilized(?)
Thank you for listening and your time.
