RMD Related Questions

[tallLeRoy]

I have arranged with my 401K account to have the custodian determine my RMD for the year and distribute it to me on a monthly basis. The payments should be an equal amount for January through November. December may vary or not to get the distributions to the exact cent of my RMD from that account.

How should I answer this question:

Annuity information

Did you get periodic payments from this retirement account with FIDELITY INVESTMENTS on a regular basis, such as monthly, quarterly or annually? 

Periodic payments

Yes

No

LeRoy

[ReneV4 · Accepted solution]

No. Arranging regular withdrawals from a 401k is generally not an annuity.

An annuity is a contract you purchased from an insurance company that guarantees income for a set period, or for life.

Therefore, since these are only withdrawals you have scheduled from your 401k to cover your RMD, answer no to the annuity question.

[tallLeRoy]

Thanks, I would have replied Yes because the question was about periodic payments. I t would help if the more info link on that page on macos returned more than a blank page.