Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
A tax deferred annuity is an insurance product. RMD is an acronym for required minimum distributions at age 70 1/2 in a qualified plan. You can have an annuity in a qualified plan as a funding vehicle. At age
70 1/2, you would have to take required minimum distributions from your annuity (if that's the only product in your plan.)
To build on what Steve wrote. Annuities can be a great tool to satisfy the RMD requirement.
A Fixed Annuity can be "Annuitized", meaning they take a portion, or all of the funds and create a yearly or monthly income to pay you for the rest of your life.
This Annuitization will satisfy the RMD requirement. it will also maximize the amount of income you receive when compared to taking the standard RMD withdrawals.
This can be accomplished through Annuitizing a Deferred Fixed Annuity, using an Income Rider on an Indexed Annuity, or transferring funds into a Lifetime Income Annuity.
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70 1/2, you would have to take required minimum distributions from your annuity (if that's the only product in your plan.)
A Fixed Annuity can be "Annuitized", meaning they take a portion, or all of the funds and create a yearly or monthly income to pay you for the rest of your life.
This Annuitization will satisfy the RMD requirement. it will also maximize the amount of income you receive when compared to taking the standard RMD withdrawals.
This can be accomplished through Annuitizing a Deferred Fixed Annuity, using an Income Rider on an Indexed Annuity, or transferring funds into a Lifetime Income Annuity.