I have a 403b retirement plan. One item in it is qualified annuity. I have now annuitized the annuity (two life, 20 year guarantee). According to the Secure Act 2.0 (2023), I can use the annuity payments to help satisfy all of the RMD requirements for the full 403b plan. How do I calculate the value of the annuity at the end of the year? (I can easily calculate the RMD using this information).
According to the Secure Act 2.0, the "Treasury Secretary is to update the relevant regulations accordingly", and "until such time as actions are taken taxpayers may rely on their reasonable good faith interpretations of this section." The annuity company says they won't compute the value of the annuity at the end of each year until the regulations are released by the IRS.
Will Turbo Tax do this calculation for me? IRS Publication 1457 gives a method for calculating the value of an annuity "for use in income, estate, and gift tax purposes". In this case, it would seem reasonable to use this calculation as if the owner died at the end of the year.
Final question: the annuity payments are reported each year, and I pay taxes on all of the income because it was funded with pre-tax dollars. Is the annuity still considered to be "in the 403b plan"?
