MYGA instead of Roth IRA conversion?

[Al18]

I’m currently 62 and have been doing Roth IRA conversions since retiring 6 years ago, to the top of the 12% bracket. Will likely do a 30K conversion next year, bringing my IRA balance to about 550K. I’m thinking of opening a 50K, 5 year MYGA with IRA money next year, to further reduce my IRA for tax purposes. I believe annuities are exempt from RMD. Not sure if this just applies to MYGA and/or SPIA. 5 year MYGA from an A rated company currently about 5.2% APY. Anyone do this?

 

[RetiredHappy]

MYGAs are not exempt from RMD. IRA SPIAs are taxed on the payout.

 

[Dtail]

Not exempt just delayed.

 

[RetiredHappy]

Not exempt just delayed.

Actually, with RMD, the year end balance of MYGA is calculated for RMD purpose and you do have to take RMD on it. You can take it amount from other IRA accounts.

 

[Al18]

Ok, thanks for the info