Can I use the monthly payments from my IRA fixed annuity to also fund THE RMD for my other IRA's ?

[antsavic]

The amount of the payment exceed the required RMD for my other IRAs.

[fanfare]

is the annuity within one of your Traditional IRA accounts ?

It is your choice which IRA you take a distribution or distribution(s) from to satisfy your minimum.

[antsavic]

The annuity was funded by an traditional IRA account. I pay tax on the monthly distribution. Going by the RMD calculators the Annuity distribution should cover the RMD for all my accounts., if it can be used for this.

[VolvoGirl]

But is the Annuity still inside the Traditional IRA account now?  Or did you take a withdrawal or distribution from the IRA to buy the Annuity?  

[antsavic]

I used the  total amount in an IRA to fully  fund the annuity. I have 2 other IRA's that will require RMD. The annuity and other IRA's are not held by the same institution. The institutions could care less about what happens to my holdings in the other institution.

[VolvoGirl]

But when you opened the Annuity did you open it in a IRA account?  If the Annuity is not inside a IRA account then no it won't cover the RMD from IRA accounts.  When you used the total IRA amount to buy the Annuity did you pay tax on it then and get a 1099R?  

[antsavic]

There was a special tax situation (maybe still is) where you could move an IRA to an annuity and not pay penalties on the move  if you are < 591/2. Only way to access an IRA without penalty. I needed money at the time. I receive form 5498  each year, and pay taxes on the annuity payments to me. Thank You.

[fanfare]

@antsavic 

OK what line on 1040 shows your annuity income.?

An RMD has to appear on 2020 1040 line 4b

Your RMD is calculated on the IRA value on close of business 12/31/2019. 

[antsavic]

The total yearly amount from the annuity  appears on line 4b of my 1040-SR. Tax return for seniors.

[antsavic]

I get a yearly 1099-R which shows the amount from the annuity. It appears on line 4b of my 1099-SR.

[fanfare]

@antsavic 

"fund THE RMD for my other IRA's"

As far as IRS is concerned you only have one traditional IRA regardless of the number of custodians.

So, calculate your year end value of ALL traditional IRAs to get your Required Minimum Distribution.

I don't think your annuity is an IRA.

If that is the case (not an IRA), then the answer to your original question is NO.

[fanfare]

@antsavic 

Update: IRS says:

"Distribution of an annuity contract from your IRA account. You can tell the trustee or custodian of your traditional IRA account to use the amount in the account to buy an annuity contract for you. You aren't taxed when you receive the annuity contract (unless the annuity contract is being converted to an annuity held by a Roth IRA).

You are taxed when you start receiving payments under that annuity contract.
Tax treatment. If only deductible contributions were
made to your traditional IRA since it was opened (this includes all your traditional IRAs, if you have more than one), the annuity payments are fully taxable.
If any of your traditional IRAs include both deductible and nondeductible contributions, the annuity payments
are taxed as explained earlier under Distributions Fully or Partly Taxable."

In this situation, it seems clear the annuity payments would be included for meeting the RMD requirement for the sum total value of all your IRAs.