Are There Required Minimum Distributions for Annuities?

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are there required minimum distributions

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for annuities very good question hi

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there I'm Stan the annuity man America's

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annuity agent licensed in all 50 states

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we're going to talk about required

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minimum distributions rmds and annuities

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and how all that stuff works after

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this all right we're going to talk about

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required minimum distributions are d s

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from here on end I'm going to say rmds

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because required minimum distributions

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it's kind of hard to say fast and I like

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to talk fast as you know so rmds with

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annuities how's that all work first of

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all let's talk about annuities in

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general I love when people say I hell no

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I hell n you already own one it's called

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Social Security and then I love the the

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people the financial journalists and

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some actual financial advisers that'll

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say the stupid thing like never put an

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annuity inside of an right I need those

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people to stop talking because as you're

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talking you're getting dumber and I'm

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getting Dumber listening to you that's

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the dumbest thing on the planet can

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annuities types be used inside of

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IRAs the answer is absolutely now why

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would you do that Stan the annuity man

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America's annuity agent why would you

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buy an annuity type and put it inside of

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an IRA well very good very good question

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here's the answer you ear an annuity for

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what it will do not what it might do the

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will do is the contractual guarantees of

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the policy so if you're using Ira money

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to buy an annuity of any type you're

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buying it for the contractual guarantees

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of the policy no there's not double tax

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deferral you know annuity deferred

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annuities outside of an IRA the uh the

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gains can grow tax deferred so if you're

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putting it inside of an IRA the money or

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the annuity inside of an IRA you already

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have tax referral in the ira so you're

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buying it for the contractual guarantees

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here's the other one that sends that

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these really nice hats these standy man

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hats off my head involuntarily is when

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people say

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never right wait a minute a qualified

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longevity annuity contract which was

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introduced in

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2014 by our friends at the IRS in the

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department of the treasury is designed

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for use in an

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IRA so for all you people out there that

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are misinformed uninformed or just don't

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know about that qualified longevity

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annuity contract CA you I've written a

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book on it you can go to my site at

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theanu man.com I'll send it to you for

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free and under no obligation QX pension

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products for use in your IRA your

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traditional IRA so not only can

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annuities be used inside of an IRA there

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is a specific annuity type that was

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designed for use inside of an IRA which

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brings us back to rmds what are rmds in

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the southern form rmds is the IRS going

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um uh excuse me um excuse me uh excuse

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me we the IRS and um we would like for

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you to start paying taxes on all that

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money you've been deferring all this

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time that's rmds and at the time of this

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taping at age

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72 they're going to tap you on the

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shoulder excuse me uh excuse me uh

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excuse me where the IRS you're going to

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have to start taking out a percentage of

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your IRA assets Total IRA assets to

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satisfy that required minimum

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distribution okay used to be 70 and a

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half I don't know why it was ever a half

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and now it's 72 and there's actually

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talk at the time of this Taping that um

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our friends at DC want to raise that

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required minimum distribution even

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higher to say age 75 who knows what's

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going to happen but right now at the

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time of this taping it's age 72 so then

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the question is can I take do I have to

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take

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rmds from my annuity let's just say for

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instance you have an indexed annuity or

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a multi-year guarantee annuity inside of

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your IRA now multi-year guarantee

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annuity and an index annuity those are

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CD type products fixed products issued

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at the state level for principal

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protection so the answer to that

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question is you don't have to take your

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rmds from those um products but you can

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when the IRS wants their required

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minimum distribution they don't want it

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in proportion on every product held

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inside the IRA all the IRS cares about

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is that percentage where you take it

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from is up to you you could take it from

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one mutual fund inside of the IRA you

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could take it in proportion if you want

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to but you do not have to so if you have

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a multi-year guarantee annuity inside of

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an IRA or an index annuity inside of an

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IRA you don't have to take required

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minimum distributions from that asset

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let's look at single premium immediate

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annuities inside of your IRA for

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Lifetime income that's what a single

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premium immediate annuity provides let's

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say say you have a $500,000 IRA and you

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buy a $200,000 single premium immediate

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annuity that pays for your life with a

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cash refund meaning that when your lar

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jet hits the mountain money in the

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account go whatever's remaining goes to

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your list of beneficiaries of the policy

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okay but let's just say you buy that

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$200,000 immediate anity with IRA funds

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and you have $500,000 in your IRA when

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you go and take your required minimum

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distributions you're going to be taking

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those required minimum distributions

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from the

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$300,000 that's not in the immediate

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annuity the income from the immediate

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annuity that $200,000 that you bought

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that's coming out will satisfy that

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required minimum distribution for the

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Assets in that immediate annuity you

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can't use any overage from that to apply

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to non- annuity assets so that leads us

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to qualified longevity annuity contracts

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qualified longevity annuity contracts

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cacs were put on the planet as I said

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earlier in the in the in the video from

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by our friends at the IRS and the

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department of the treasury so that you

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can establish a future pension payout

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okay using Ira assets most people that

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are buying CAC are buying it and setting

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it up for joint lifetime income payments

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with their spouse so if they die their

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spouse gets the income uninterrupted and

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unchanged for as long as they're living

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but you're using your IRA assets so

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let's just say you're Johnny Trader out

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there and your wife is Betty Trader and

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Johnny Trader is the best Trader on the

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planet but he has this big IRA and he

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sets up this CAC for Johnny and Betty to

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have a joint lifetime income stream

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started at age 80 or you can go as far

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out as age 85 you don't have to go that

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far but that's when you have to turn on

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income that's the fartherest furtherest

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the IRS allows you to go that income

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stream is set up for Betty and a lot of

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you Masters of the Universe out there

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that would never consider an annuity

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because you can do better with

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Investments I hope you can I mean

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annuities are contracts in this case a

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CAC is a pension payment but most people

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that are buying them are buying them

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right now to set up a lifetime income

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stream for your spouse a legacy product

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for lack of a better phrase give you a

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good example my wife of 30

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years a lot of years she should I mean I

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don't what she's doing anyway she could

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care less about stocks and bonds and all

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that stuff all she cares about is seeing

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seeing her daughters going to see her

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daughters and there will be

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grandchildren in the future and then

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she's going to probably move there

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that's all she cares about so what she

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wants me to do is set up lifetime income

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streams so that she can go do that when

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my le jet hits them out no I don't have

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a Lear jet but I'd like the lease one if

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you have one for lease just give me a

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call I still wouldn't do it but anyway

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that's what she cares about and maybe

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your spouse is the same way

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so are there required minimum

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distributions for annuities the answer

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is yes if you have annuities inside like

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deferred annuities inside of your IRA

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they have to be part of the overall

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calculation but that doesn't mean you

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have to take it in proportion you can

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take your rmds from the annuities if you

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want or another asset but it is part of

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the overall calculation I encourage you

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to go to my site at the annuity man.com

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so that we can have a one-on-one

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conversation about this and put together

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a customer plan for rmds whether it's

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using an immediate annuity or or a Miga

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or an index annuity or even a CAC so

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that we can customize a plan for either

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principal protection or lifetime income

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whatever your goal is I also encourage

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you to get my books you can go to my

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site at theanu man.com order my six

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annuity owners manual I'll s send them

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to you ship them to you hard copies for

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free and under no obligation thanks

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again for joining me hit the Subscribe

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button and I'll see you on the next

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stand the annuity Man YouTube video

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