RMD

[peggysioux5]

Taxpayer has several IRA accounts and turned 70 1/2 in 2019. Financial institutions provided the information of RMD amounts needed for for each IRA account. Taxpayer cashed in an annuity that was over the required minimum distribution of all IRA accounts and received a 1099-R for the distribution from the annuity. The 1099-R for the annuity distribution is not marked as an IRA. My question - does the distribution from the annuity satisfy the RMD requirement for the IRA's? Or being the annuity was not part of an IRA, the RMD's are still required from the IRA accounts?

Peggy Sioux

 

[Lee B]

The CARES Act waived RMD requirements for calendar year 2020.  Standard RMD requirements will be back in effect January 1, 2021.

You don't say, but given the timing of your question, I assume this was a 2019 distribution ?

RMD rules for annuities are different and calculated separately, therefore your client's  RMD requirements for the IRAs must be met,

without regard to what was distributed from the annuities.