|Pension Corporation of America|
Pension Corporation of America
2133 Luray Avenue
Cincinnati, OH 45206
|Required Minimum Distributions (RMDs)
contracts have fees and
provisions, and terms for
keeping the annuity in
force. It is important
to understand that
purchasing an annuity in
an IRA or an
retirement plan provides
no additional tax benefits
than those available
through the tax-deferred
Annuity guarantees are subject to the claims-paying
ability and financial strength of the annuity issuer.
Can You Satisfy the RMD Rules with the Purchase of an Annuity Contract?
Your purchase of an annuity contract with the funds in your IRA or retirement plan
satisfies the RMD rules if all of the following are true:
- Payments are made at least yearly
- The annuity is purchased on or before the date that distributions are required to
- The annuity is calculated and paid over a time period that does not exceed those
permitted under the RMD rules
- Payments, with certain exceptions, do not increase
If you participate in a 401(k) (or similar plan) or an IRA, you may also be able to use up to 25% of your account balances (up to a maximum of $145,000 from all accounts, indexed for inflation) to purchase a qualifying longevity annuity (or QLAC). The value of the QLAC is disregarded when you calculate the amount of RMDs you are otherwise required to take from your account each year. Payments from the QLAC can be delayed up to age 85, and are treated as satisfying the RMD rules when paid. The rules can be complicated, and QLACs are not right for everyone, so be sure to consult a qualified professional for further information.
|Advisory Services Offered Through PCA Investment Advisory Services, Inc.
Securities Offered Through L.M Kohn & Company 10151 Carver Road, Ste. 100., Cincinnati, OH 45242
Member FINRA/SIPC And a Registered Broker-Dealer not affiliated with PCA Investment Advisory Services, Inc.
This communication is strictly intended for individuals residing in the state(s) of CT, IN, KY and OH. No offers may be made or accepted from any resident outside the specific states referenced.
|Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2022.