Annuity RMD: Who Cares Other Than the Ultra Rich? (TAM Classic)

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states. Today talking about annuity

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RMDs. Who cares about that other than

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ultra rich evil rich people that have

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these huge IRAs,

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etc. I saw something the other day where

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you know the amount of people whose

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401ks and IAS have gone past a million

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dollars is a lot is a big is a shiato

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load as they say. That's politically

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correct by the way. You can quote me on

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that. But we're going to go through RMDs

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and what RMDs really mean. required

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minimum distributions, but to us from

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here on in, it's RMDs after this

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[Music]

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song. All right, so let's talk about

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RMDs, required minimum distributions.

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And you probably already know. If you

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don't, then this is a good little

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refresher course on that. requirement

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minimum distributions in the south

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southern speak where I'm from is the IRS

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tapping you on the shoulder going hey

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hey hey hey hey hey hey hey hey hey hey

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hey hey hey hey hey hey hey hey hey hey

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hey you've been deferring deferring

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deferring deferring deferring for all

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this time and now you're 72 the time of

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this taping uh that is the age that the

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IRS taps you on the shoulder and says

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you have to start taking money out of

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your required minimum distribution of of

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your IRA qualified accounts it's called

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a required minimum distribution and you

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have to take money out so we can charge

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you taxes on it So you can pay taxes to

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the government. That's a required

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minimum distribution. It's not

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negotiable. You, as you know, you don't

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you can't go like, well, I don't really

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need the money. I Yeah. No, they're

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tapping you on the shoulder and saying,

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hey, you know, based on and they'll send

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you the charts and you can go to the

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IRS.gov and look all that stuff up. We

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won't go through all that nonsense. But

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bottom line is the older you the older

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you get, the higher the percentage

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because they want you to take more money

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out so they can charge you more taxes.

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That's the bottom line. I think you

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should look at required minimum

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distributions as an income source when

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you turn 72 because it is you're going

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to have to take money out of that

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qualified account period whether you

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whether you want to or not. That's it

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that's going to be kind of an income

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source. Now the IRS doesn't care where

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you take the RMD from. You could have

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multiple IAS scattered across the board.

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They don't care. They just want to know

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the total amount and then they want you

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to take the percentage from somewhere,

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one of those IRAs, whatever, to pay them

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so they can charge you taxes. So with

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annuities, you know, you can

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somewhat circumvent a few things with

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RMDs, but at the end of the day, you got

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to pay the man right now. There's what's

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called a qualified longevity annuity

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contract that was put on the planet by

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our friends at the IRS and the Treasury

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Department. that's who created it for

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use in your qualified your IRA,

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traditional IRA type accounts, not a

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Roth, you know, 401k, IRA, those type of

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things. Okay, those are qualified

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accounts. But at the end of the day, you

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have this traditional IRA, your IRA, and

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you can buy a qualified longevity

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annuity contract for future income at a

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date as far out as age 85. It doesn't

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have to be that far out. And I've

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written a book on that. Go to my site at

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theanuityman.com. I'll send you my book,

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my QAC owners manuals. I've done a lot

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of videos on QAXS as well, but that is a

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legal way to lower your required minimum

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distribution amount because that amount

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of money is not used to determine your

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required minimum distributions. Give you

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an example. Let's just say you have a

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million dollar IRA. At the time of this

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taping, the the the funding rules for

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qualified longevity annuity contracts is

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the lesser of 25% of your total IRA

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assets or

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$135,000 at the time of this taping.

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It's going to go up. I'm going to

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guarantee that that limitation, but at

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the time of this taping, that's those

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are the rules. So, with a million-doll

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IRA, you're you can fund a CQAC with

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$135,000. Now, when you go to determine

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your required minimum distribution, that

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$135,000 in a QAC is not used as part of

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the overall asset. So, you can

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potentially lower your required the

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taxes on your required minimum

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distributions because you're using a

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lesser amount of money. Does that make a

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queue like a no-brainer pound the table

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you got to buy? No, it does not. But

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it's something for you to consider

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because you can add your spouse for

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joint lifetime income. But re require

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minimum distributions. Bottom line is

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you have to take them. Now let's look at

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another scenario in a nonqual nonqlac

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scenario. Let's just say you need

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immediate income with a single premium

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immediate annuity and you still have

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that

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$100,000 um IRA. You can let's just say

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you said, you know what, I need a

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$100,000 immediate annuity using IRA

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assets. that income stream coming from

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that immediate annuity fully satisfies

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the requirement of distribution for that

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immediate annuity asset. So it doesn't

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have to be a qualified longevity annuity

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contract. The bottom line is if you need

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lifetime income using IRA funds, you can

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either use a CQAC and defer it or you

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can use an immediate annuity for

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immediate annuity income inside of an

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IRA. And if anyone says never buy an

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annuity inside of an IRA, point out the

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fact that the IRS and the Treasury

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Department actually developed an annuity

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for use inside of an IRA. So people that

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are saying that they're in a time warp.

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I mean, they they literally are in a

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time warp or in a cognitive decline or

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they're just a dumb financial journalist

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or a dumb financial adviser that doesn't

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know any better and they just cart

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blanches like never bought any money

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instead of an IRA. That's stupid. Of

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course, you can if it makes sense for

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you and you are trying to solve a

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specific for a specific goal. I always

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ask people two questions. What do you

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want the money to contractually do? When

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do you want those contractual guarantees

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to start? If you said to me, well, I

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have an IRA and I might need income in

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the future. Then we look at a culac. If

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you said, well, I need income now. When

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then we look at a single premium

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immediate annuity. Let's talk about

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inflation and and using these type of

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annuities as well. Some people are

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taking qualified longevity annuity

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contracts and having and splitting up

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that 135 at the time of this taping.

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That's the funding maximum you can put

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in. And they're splitting it and having

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a portion start at age 75 and then a

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portion start at age 80 and then a

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portion of that QAC money start at age

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85. So 75 80 85. And they're lading the

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income to combat future and possible and

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potential and probably going to happen

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inflation. So just put that in the back

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of your head. required minimum

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distributions are going to happen. I

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I've heard some rumors that, you know,

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they're going to increase the age past

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the 72 mark, but that's hard for me to

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believe because the IRS needs I mean,

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and and the government needs funds,

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right? They need tax revenue, and that

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would make no sense to me for them to

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raise that age. If they do, great.

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That's good for you. But right now, it's

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age 72. So, plan on it as part of your

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income floor. So you have social

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security, dividend income, rental

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income, side hustle income, RMD income,

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and then annuity, lifetime income if you

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if you want lifetime income insurance

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using annuities, but think of RMDs,

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required minimum distributions as part

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of your income floor. So I know the

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title of this was, you know, who cares

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about RMDs other than the ultra rich.

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Everybody with an IRA should care.

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Everybody watching this video should

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care. Um, when it comes to RMDs, there's

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no way to get out of the way. IRS is

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going to require required minimum

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distributions. They're going to require

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you to take that out. So, if you want to

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to combat that legally, there are some

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ways to do that with annuities,

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qualified longevity annuity contracts,

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single premium immediate annuities, ex,

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eterc. Is it etera? Yeah. So, with that,

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hey, do me a favor. Go to my site at

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theanuityman.com.

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I've written a very good and simple,

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easy to understand book on qualified

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longevity annuity contracts. I'll send

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you send you that for free and under no

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obligation. If you go to the Stan

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theanuity Man YouTube channel and you

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look under playlist, I've done a bunch

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of videos on qualified longevity annuity

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contracts. And if you go to the site at

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theanuityman.com, you can run your own

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qualified longevity annuity contract

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quote using our proprietary calculators.

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So, we're giving you all of that

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information. We'll quote all carriers.

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you can see what the contractual

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guarantee is. And then at the end of

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that process at the top lefthand corner

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of the site, book a call with me, Stan

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the annuity man, and we we will go

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through the good, the bad, the

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limitations, the benefits, and all of

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that to see if this makes sense for you,

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and we can help you with your required

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minimum distribution planning. So, with

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that, hit the subscribe button, and I'll

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see you on the next Stan the Annuity Man

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YouTube video.

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