@antsavic
Update: IRS says:
"Distribution of an annuity contract from your IRA account. You can tell the trustee or custodian of your traditional IRA account to use the amount in the account to buy an annuity contract for you. You aren't taxed when you receive the annuity contract (unless the annuity contract is being converted to an annuity held by a Roth IRA).
You are taxed when you start receiving payments under that annuity contract.
Tax treatment. If only deductible contributions were
made to your traditional IRA since it was opened (this includes all your traditional IRAs, if you have more than one), the annuity payments are fully taxable.
If any of your traditional IRAs include both deductible and nondeductible contributions, the annuity payments
are taxed as explained earlier under Distributions Fully or Partly Taxable."
In this situation, it seems clear the annuity payments would be included for meeting the RMD requirement for the sum total value of all your IRAs.
