topic Re: Annuity RMD in Retirement tax questions

Annuity RMD

jrb98391 — Fri, 26 Sep 2025 18:09:40 GMT

My retirement pension was recently converted to an annualized annuity. How do I determine what the RMD is for this annuity? Is it just the total of payments I receive during the year? I understand that under changes made in the SECURE 2.0 act, that if the payments exceed the RMD amount due, I can use the excess to offset the RMD due from my other retirements accounts.

Re: Annuity RMD

fanfare — Fri, 26 Sep 2025 18:15:01 GMT

"the payments exceed the RMD amount due, "

can't happen with an annuity, so no help there.

@jrb98391

Re: Annuity RMD

jrb98391 — Fri, 26 Sep 2025 18:49:57 GMT

My info was based on this reply I received from Google:

Under the SECURE 2.0 Act, if your annuity payments exceed your RMD for that contract, the excess can be applied toward RMDs for other accounts, such as an IRA.

Re: Annuity RMD

jrb98391 — Fri, 26 Sep 2025 19:07:22 GMT

And this from Fidelity:

Key takeaways

A little-known SECURE 2.0 Act rule lets "excess income" from qualified annuities satisfy RMDs for other accounts.
Previously, excess income, or the amount of annual income minus the RMD on the annuity, could not be used to offset the RMD for other accounts.
That means more money could potentially stay invested in your retirement portfolio longer, giving your money the potential to continue growing tax-deferred.

Re: Annuity RMD

fanfare — Fri, 26 Sep 2025 20:47:38 GMT

"the payments exceed the RMD amount due"

not clear to me how that can happen with an annuity.

contact your financial institution for possible scenarios.

@jrb98391