I have been getting a 1099-R every year since I started taking the income rider distributions - beginning at age 59.5 As far as the contact value going to zero, I agree that the account will continue to grow, however, since the rider allows me to take 5%/year of the protected payment base, the contract value will decrease by this amount every year and will eventually be zero - unless they take into account the fair market value of the rider. In that case, the contract value will always include the fair market value of the income rider and never be zero. The 5% distribution from the rider is significantly higher than the growth of the contract - especially now that the rider has been distributing 5%/year for the last 10 years. 2020 will be the first year that I will be subject to the RMD.
I agree it’s not straightforward. I did talk to their representative, however, I don’t think he fully understood my questions.
