Annuity RMD

[jrb98391]

My retirement pension was recently converted to an annualized annuity. How do I determine what the RMD is for this annuity? Is it just the total of payments I receive during the year? I understand that under changes made in the SECURE 2.0 act, that if the payments exceed the RMD amount due, I can use the excess to offset the RMD due from my other retirements accounts.

[fanfare]

"the payments exceed the RMD amount due, "

can't happen with an annuity, so no help there.

@jrb98391 

[jrb98391]

My info was based on this reply I received from Google:

Under the SECURE 2.0 Act, if your annuity payments exceed your RMD for that contract, the excess can be applied toward RMDs for other accounts, such as an IRA.

[jrb98391]

And this from Fidelity:

Key takeaways

• A little-known SECURE 2.0 Act rule lets "excess income" from qualified annuities satisfy RMDs for other accounts.
• Previously, excess income, or the amount of annual income minus the RMD on the annuity, could not be used to offset the RMD for other accounts.
• That means more money could potentially stay invested in your retirement portfolio longer, giving your money the potential to continue growing tax-deferred.

[fanfare]

"the payments exceed the RMD amount due"

not clear to me how that can happen with an annuity.

contact your financial institution for possible scenarios.

@jrb98391