Transfer Payout Annuity and RMD requirements

[djb_Texas]

Are the funds cashed out from a Transfer Payout Annuity and reported on a 1099R considered a RMD?

[MaryK4]

Yes, if you cashed out the account, it would be counted as the RMD for the year. The RMD is the amount you are required to take out of retirements accounts after you reach a certain age.

[djb_Texas]

We took a 10 payment Transfer Payout Annuity paid out over 9 years and the amount is more than the RMD based on age -- so I'm confused about why this would be considered a RMD (ie. it is more than the minimum).  I used the term "cashed out" because we did not transfer it into our IRA; we are spending the funds received.

[ColeenD3]

It is okay if it is more than the RMD. What counts is that you are taking the RMD and not taking too little.