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SPIA for 72t

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Last Updated On
ByPete

L1: SPIA for 72tI think this has alreaady been asked but, instead of a SEPP w a low rate, can I use a SPIA (life onlly option) if I am 50yrs old?? Or would the SPIA generate an income that blows the 120% rule??

Thanks.2009-06-10 18:23, By: Pete, IP: [65.41.7.17]

L2: SPIA for 72tYou can use a SPIA [Single Premium Immediate Annuity] payable over you life expectancy or if period certain, not less than 34.2 years certain.
The real question… why would you want to use an SPIA or are you also the agent receiving the commission.You should easily be able to match the annuity payout without giving up control of the assets.2009-06-10 18:31, By: Gfw, IP: [216.80.125.206]

L2: SPIA for 72tI interpreted the question a little differently; e.g. if a SPIA is purchased in the IRA and starts distributing and by virtue of the product, actually distributes more than that which is permissble under the SEPP rules; would that invalidate the SEPP plan?
Answer: YES. Revenue Ruling 2002-62 tells us all very clearly how to compute the maximum annual distributions from an IRA. If a taxpayer is smart / astute enough to make purchases within the IRA that yield more income than is permissible to be distributed then all the power int he world to that taxpayer – simply do not distribute it.2009-06-10 18:37, By: TheBadger, IP: [65.41.7.17]

L3: SPIA for 72tThat’s what I thought….I didn’t think there was a way to get more of a payout….No matter the product inside the IRA….Thanks2009-06-10 18:40, By: Pete, IP: [65.41.7.17]

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