Are Annuities subject to RMD? (Chesterland, OH)

I’m gonna be honest here required minimum distribution can be a pretty confusing topic and so many investors who are out there weighing their options have questions about whether or not R MD applies to an annuity. The answer is that some annuities are subject to RM DS and some are not uh qualified annuities must meet R MD mandates but non-qualified annuities ignore R MD rules. Qualified annuities are funded with pre tax dollars, which means the investor doesn’t pay taxes on the money that goes into the annuity. On the other hand, non-qualified annuities are paid with post tax dollars. So this pretty much means that the investor has already paid taxes on the money in the annuity and therefore does not need to worry about RM DS. So in other words, if you have a qualified annuity, you have deferred your tax payment. Right? Uncle Sam wants to make sure that your taxes are eventually paid and the R MD makes this happen. So before making any investments in an annuity, you must understand all the rules and obligations. It is so so important, we suggest you speak with a financial advisor that you know that you trust, uh, before making any investment decisions.

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