Accounting, Payroll & Pension Issues/Variable Annuiity RMD

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Question
In regards to a variable Annuity with guaranteed income does the IRS use the actual account value at year end or some other value to determine the RMD.

Thanks

Answer
Joe:

No, the value for an RMD distribution will be based upon the Fair Market Value (FMV) for each of your annuity contracts. The FMV is the combination of the prior year’s end contract value and the actuarial present value of additional benefits of the annuity contract, including the receipt of guaranteed income. The IRS will then determine your RMD minimums by an actuarial assessment of your life expectancy. All these factors play into the RMD amount.

If you are an IRA owner you should be provided with the FMV for your account by January 31st each year, this is required by law. If you have a different type of annuity, like in a 403(b) or 401(k) plan, you will most likely have to contact your plan provider to obtain the FMV of your annuity contract.

I hope this helps.

Thanks,

Tony DePasquale
President
Elysien Private Wealth
www.Elysien.com

Accounting, Payroll & Pension Issues

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Tony DePasquale

Expertise

Pension plan questions, investment management services, plan fiduciary services, profit sharing, defined benefit planning, defined contribution planning, 401(k), 403(b), IRA rollover, plan consulting services, plan structure and plan design consulting.

Experience

I have over 10 years experience regarding pension plan management including; investment fiduciary services, plan structure and design, plan administration, employee education, Uniform Prudent Investors Act (UPIA) services, overall plan management consulting, Employee Retirement Income Security Act (ERISA) law and Department of Labor (DOL) law.

Publications
Nevada Business Magazine Henderson Press La Voce International Magazine

Education/Credentials
BA Economic History, University of Nevada Las Vegas Independent Pension Fiduciary ERISA 3(38) Investment Fiduciary ERISA 3(21) Fiduciary

Awards and Honors
Las Vegas Chamber of Commerce Excellence In Client Service Award In Business Las Vegas - Who's Who Banking & Financial Services

Past/Present Clients
Elysien Private Wealth - President Private Wealth Merrill Lynch - Financial Advisor

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