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derfdriver
New Member

If I use 401k funds to purchase an income annuity will the annuity payments meet the R M D requirements

 
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DDollar
Level 4

If I use 401k funds to purchase an income annuity will the annuity payments meet the R M D requirements

If you roll your 401(k) into an annuity within an IRA, the annuity payments will count towards your RMD requirements. Whether or not they will meet the RMD requirements in full depends upon many different factors (age, sex, type of annuity, total qualified plan assets, etc.) and is beyond the scope of AnswerXchange - which is a public forum.

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DDollar
Level 4

If I use 401k funds to purchase an income annuity will the annuity payments meet the R M D requirements

If you roll your 401(k) into an annuity within an IRA, the annuity payments will count towards your RMD requirements. Whether or not they will meet the RMD requirements in full depends upon many different factors (age, sex, type of annuity, total qualified plan assets, etc.) and is beyond the scope of AnswerXchange - which is a public forum.

dmertz
Level 15

If I use 401k funds to purchase an income annuity will the annuity payments meet the R M D requirements

The annuity payments to you generally only meet the RMD requirements with respect to the annuity itself.  However, if this annuity was purchased *within* the 401(k) account, the annuity payments to you will apply toward satisfying the RMD for the entire 401(k) only during the year that the annuity was purchased.  After the first year, the annuity payments to you will only satisfy the portion of the 401(k)'s RMD corresponding to the annuity itself.  Note that the 401(k) is required to make sure that they distribute to you all RMD amounts required of you, otherwise the entire 401(k) plan risks disqualification.
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