Originally Posted by cashflo2u2
In a few years I will be faced with the RMD requirement. I wondering if one purchased an immediate fixed annuity within the IRA, say with half the IRA funds, and the annuity payment was equal to or greater than the RMD requirement for the entire IRA, would that satisfy the RMD requirement for the entire IRA? Nobody seems to be able to give me a definitive answer on this including VG annuity specialist.
PS: I find that an immediate fixed IRA for about 25% of my portfolio greatly increases the survivability of my remaining portfolio. Not sure why.
Well, annual RMD's go up each year, so eventually you will have to take extra out of the account. I am not a big fan of SPIAs, they are too limiting. You could accomplish the same thing with more control by either doing a systematic distribution either monthly, quarterly or annually to match your annual RMD. I am also not a fan of fixed annuities, the rates, (other than the early 80's) aren't that great.
I think you could accomplish your goals in other ways.............