But I believe Dick's point is that you cannot know whether it will be 100k or 250k because you don't know the date on which benefits cease. So you can't know if you will have the extra 150k in your example.
Thanks, William, for the additional input. I may be interested in a QLAC at some point, so the information is appreciated. My current annuity is a deferred fixed annuity, beyond the 200k limit of a QLAC. It was set up through Fidelity with a top-rated insurer. In my brokerage account, it is listed as a "deferred fixed income annuity," and the first payment will be this coming December, 2024.
Thanks, William, for the information on the QLAC angle. My situation is actually a deferred fixed income annuity, over the amount allowed for QLACs, and well described by Rick as a "partial annuitization" of an IRA. I am, indeed, trying to escape the penalty forcing me into a larger RMD than if I had not annuitized a portion of the IRA.
Thanks, Rick, for this link and your other comments. Indeed, the situation I am concerned with is well summarized in the last several paragraphs of the article linked above. As I understand the issue, the non-annuitized funds in my IRA can be grouped with the value of my deferred fixed income annuity which was funded from that IRA for the purpose of calculating my RMD obligation, "and" (and this is my real question) then all the payments received from the annuity can be credited as part of my RMD. I am aware, as stated in the article, that the IRS has not yet clarified exactly how or by whom the annuity is to be valued, which perhaps puts anyone who uses such a calculation in danger of a penalty.
Comments
Somehow I don't think mulling over my claiming decision at my demise will be a thing.
Post: Breaking even? Why should anyone care? I don’t
Link to comment from May 17, 2025
But I believe Dick's point is that you cannot know whether it will be 100k or 250k because you don't know the date on which benefits cease. So you can't know if you will have the extra 150k in your example.
Post: Breaking even? Why should anyone care? I don’t
Link to comment from May 17, 2025
Thanks - Cheers!
Post: Can annuity income be used to offset RMD obligations from other accounts?
Link to comment from July 6, 2024
I'm thinking that when those in the 2-3% group rub shoulders with the 1%, they would hesitate to consider themselves in the same category.
Post: Dick Quinn’s guaranteed route to becoming “rich.”
Link to comment from July 6, 2024
Thanks, William, for the additional input. I may be interested in a QLAC at some point, so the information is appreciated. My current annuity is a deferred fixed annuity, beyond the 200k limit of a QLAC. It was set up through Fidelity with a top-rated insurer. In my brokerage account, it is listed as a "deferred fixed income annuity," and the first payment will be this coming December, 2024.
Post: Can annuity income be used to offset RMD obligations from other accounts?
Link to comment from July 6, 2024
A lot of good advice, as usual. I'd put your numbers in the "well off" category, and suggest "rich" is north of at least 5 million, if not more.
Post: Dick Quinn’s guaranteed route to becoming “rich.”
Link to comment from July 6, 2024
Thanks, William, for the information on the QLAC angle. My situation is actually a deferred fixed income annuity, over the amount allowed for QLACs, and well described by Rick as a "partial annuitization" of an IRA. I am, indeed, trying to escape the penalty forcing me into a larger RMD than if I had not annuitized a portion of the IRA.
Post: Can annuity income be used to offset RMD obligations from other accounts?
Link to comment from July 6, 2024
Thanks, Rick, for this link and your other comments. Indeed, the situation I am concerned with is well summarized in the last several paragraphs of the article linked above. As I understand the issue, the non-annuitized funds in my IRA can be grouped with the value of my deferred fixed income annuity which was funded from that IRA for the purpose of calculating my RMD obligation, "and" (and this is my real question) then all the payments received from the annuity can be credited as part of my RMD. I am aware, as stated in the article, that the IRS has not yet clarified exactly how or by whom the annuity is to be valued, which perhaps puts anyone who uses such a calculation in danger of a penalty.
Post: Can annuity income be used to offset RMD obligations from other accounts?
Link to comment from July 6, 2024
Yes--the Fidelity Debit card allows one to use most any ATM without worry about fees, since all are reimbursed in a timely manner.
Post: My Shame
Link to comment from July 5, 2024