The IRS enforces required minimum distributions (RMDs) to ensure withdrawals from traditional retirement accounts as individuals age. This policy helps collect tax revenue and simplify inheritance for heirs. The Secure 2.0 Act of 2022 has implemented improvements, enabling annuity income to count toward the RMD, potentially lowering the amount required to withdraw. This can limit the necessity of selling investments for RMD fulfillment. Key considerations include risk tolerance, retirement goals, and ensuring the annuity is held within an IRA to apply towards RMDs.
Receiving $30,000 in annuity income can reduce your RMD if the annuity is in a traditional retirement account.
The Secure 2.0 Act of 2022 improved U.S. tax codes, allowing annuity income to count towards your RMD.
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