How Withdrawals Affect an RMD

Our annuity contracts allow owners to set up automatic Required Minimum Distributions annually. Policyowners can schedule an annual RMD payment to occur between February and November. Automatic or manual RMD payments are never subject to surrender charges or market value adjustment.

Policyowner RMD amounts are calculated at the beginning of each year. An important reminder, if a policyowner takes any withdrawals prior to the scheduled automatic RMD payment date, those withdrawals will reduce the RMD payment for the year. 

Take a look at this example: 

• An owner schedules their annual RMD for November.
• The calculated annual RMD amount is $3,000
• The owner takes a one-time withdrawal of $1,000 in June.
• If the RMD for the year is $3,000, the November payment will be $2,000 

Policyowners expecting the full RMD amount may be surprised by the smaller payment. You can help by reminding your clients that additional withdrawals count towards satisfying their RMD for the year. 

Have questions?

Please contact our service specialists at 800.247.6888 or send us a message.