Annuities and RMD's?

[ejman]

Is there any advantage to buying a single premium annuity within an IRA thereby taking the annuity cost off the RMD base calculation? I realize that the annuity distributions are fully taxable but I'm wondering if it makes sense in the latter stages when the RMD distributions get hefty and taxes do as well.

 

[gerrym51]

Is there any advantage to buying a single premium annuity within an IRA thereby taking the annuity cost off the RMD base calculation? I realize that the annuity distributions are fully taxable but I'm wondering if it makes sense in the latter stages when the RMD distributions get hefty and taxes do as well.

if i was going to buy annuity(which i don't believe in) i would take ss at 70(i took mine at 62) instead of buying annuity

 

[ejman]

if i was going to buy annuity(which i don't believe in) i would take ss at 70(i took mine at 62) instead of buying annuity

I was thinking more in terms of using an immediate annuity as a way to manage RMD's. The amount that can be converted to ROTHs at reasonable tax rates is limited, particularly in high tax states. I was wondering if there are ways to manage RMD's for those that have substantial balances in traditional IRA's/401K's. I think that converting a significant portion of an IRA to an immediate annuity would remove the amount converted from RMD requirements.