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Annuities are contracts, regardless of type.  They can be held inside of a Traditional IRA, and any distributions coming from that annuity is taxed at ordinary income levels.  Whether the annuity is held inside of a Traditional IRA or non-IRA type account, the contractual guarantees are the same.  The only difference is how those annuity distributions/income are taxed.

Single Premium Immediate Annuities (SPIAs), Deferred Income Annuities (DIAs), Qualified Longevity Annuity Contracts (QLACs), Variable Annuities (VAs), Fixed Index Annuities (FIAs), and Multi-Year Guarantee Annuities (MYGAs) can all be held inside of a Traditional IRA.  All except for QLACs can be held inside of a Roth IRA.

Annuity distributions coming out of a Roth IRA are tax-free because all money coming out of a Roth IRA has no tax consequences.

Annuities that are "annuitized" or creating a lifetime income stream inside of a Traditional IRA are RMD (Required Minimum Distribution) friendly.  Let me explain.  If you are receiving a lifetime income stream from a SPIA that is inside of a Traditional IRA, then that income stream fully covers the RMDs for that SPIA dollar amount.  You can't use any of that income to cover non-annuity RMDs, but it does fully cover RMDs for that SPIA.  In addition, that dollar amount in the SPIA is not used to calculate RMDs for the rest of your non-annuity assets inside of that Traditional IRA.

Contact Stan The Annuity Man to get the best contractually guaranteed quotes from all carriers using Stan's proprietary annuity calculators.  You can also receive his 6 Annuity Owner's Manuals for free and under no obligation.