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New Member
posted Mar 24, 2021 12:32:27 AM

Are regular payments from an IRA Annuity considered to be RMDs?

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1 Replies
Expert Alumni
Mar 24, 2021 5:15:28 AM

It depends, if you are age 72 (70 ½ if you reach 70 ½ before January 1, 2020) then you distribution will most likely include an RMD. You can check with your issuer to be sure. Please be aware, for 2020 RMDs were waived.

 

RMD stands for required minimum distribution. It's the minimum amount of money you're required to take out of your retirement plan once you turn 72.

 

RMD rules apply to all employer-sponsored retirement plans, such as pensions, profit-sharing, 401(k), 403(b), and 457(b) plans, as well as Traditional IRAs and IRA-based plans, such as SEPs, SARSEPs, and SIMPLE IRAs. However, RMDs aren't required for Roth IRAs while the owner is still alive.

 

Your 1099-R issuer is required to follow RMD rules and regulations, so if you received a distribution and you're at least 72 years young, you can be almost certain you received an RMD. Check with your plan administrator if you're still not sure (RMD).