Advisor Insights

IRA Annuity Surprises

Natalie Choate

When an IRA is converted to or invested in an annuity, the required minimum distribution results can create some unwelcome surprises, as these examples illustrate.

Please note: These examples are entirely hypothetical and are not intended to endorse the planning ideas discussed. Moreover, this column concerns “true” (“immediate”) annuities providing guaranteed regular payments from an insurance company in exchange for a lump sum investment, not “deferred” annuities being held as an investment asset.