Should the value of an immediate annuity be included in the minimum distribution calculation? Additionally, does the income received count towards reducing the required minimum distribution?
The distribution of an annuity contract from a plan is not treated as a distribution for purposes of the minimum required distribution rules. See Prop. Treas. Reg. 1.401(a)(9)-1, Q&A H-6. Rather, distributions from the annuity contract itself count toward the plan’s distribution requirements (Q&A F-4).
Related Questions
- Should the value of an immediate annuity be included in the minimum distribution calculation? Additionally, does the income received count towards reducing the required minimum distribution?
- During our marriage my husband always received stock options as part of his pay package. Should the value of his stock options also be included in his yearly income?
- Can I use the qualified charitable distribution to create a trust or gift annuity or another life income agreement from which I would benefit?
