Annuity FAQs - Required Minimum Distributions (RMD)
When am I required to take a distribution from my annuity contract?
If your annuity is a qualified IRA, you are required under IRS regulations to
take distributions each year beginning in the year you turn age 70 and 1/2.
If your annuity contract is nonqualified, under the terms of the annuity
contract you must surrender or begin annuity payments by age 99. See also FAQs
on Surrenders or Annuity
Payments.
How is my Required Minimum Distribution calculated?
Distribution amounts are calculated based on the value of your annuity contract
on December 31 of the prior year. In most cases, the value of your annuity is
simply divided by the IRS table factor for the age you will attain in the year
of the distribution.
Can I receive my RMD automatically?
The IRA annuity contract owner can elect to receive RMD distributions on a
monthly, quarterly, semi-annual or annual basis. Complete and sign an Required Minimum Distribution Form and mail it to our
Customer Service Center. Your RMD distribution will begin on the next
scheduled modal distribution date after your request is received.
- Monthly RMD distributions are processed on the first business day
of each month.
- Quarterly RMD distributions are processed each March 15, June 15,
September 15 and December 15.
- Semi-annual RMD distributions are processed each June 15 and
December 15.
- Annual RMD distributions are processed each December 15.
