Annuity glossary
Required Minimum Distribution (RMD)
The minimum amount federal law requires you to withdraw each year from traditional IRAs and workplace retirement plans once you reach the age set by current law. Annuities held inside those accounts count toward the calculation. Missing an RMD triggers an IRS penalty, which is why deferral strategies such as QLACs exist. Tax treatment depends on current law and the contract's facts, so individual guidance may be appropriate.
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