In practice, though, the biggest complication in determining RMDs for qualified annuities with substantial additional benefits is simply determining the appropriate “actuarial present value” of the additional benefits in the first place. In most cases, annuity companies will provide a reasonable estimate, but some do not, and others do not provide very “sophisticated” or accurate valuations. (Retirees and their advisors can seek out third-party actuaries for a third-party valuation if necessary, where the prospective size of the RMD and the tax consequences are large enough to merit paying for an independent valuation.)
