Advanced Underwriting Consultants

Question of the Day – May 14

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: My client has named his son as the 100% beneficiary of his IRA.  The client wants to annuitize the IRA for the joint life expectancies of himself and his son.  Will the annuitization satisfy the RMD requirement for the taxpayer?

Answer: No.

An annuitization of an IRA for the joint lives of the participant and his spouse beneficiary will generally satisfy RMD requirements.  An annuitization for the lives of the participant and his nonspouse beneficiary usually will NOT satisfy RMD requirements.

Question 2 in Regulation 1.401(a)(9)-6 cover this:

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