As always, a good, complete, and correct answer from Nisiprius.You can use money in an IRA to buy a commercial annuity. In the case of a SPIA, when you buy the annuity, it will ask about the source of funds.
If you say that it is a TIRA, then the annuity will, itself, be a kind of TIRA, with the payouts being considered by the IRS to be taxable distributions which the IRS accepts as satisfying the required minimum distribution requirement.
The firm where you had the TIRA and the insurance company are not connected in any way, it is treated as a custodian-to-custodian transfer between different custodians.
Statistics: Posted by Stinky — Sun Dec 07, 2025 3:10 am — Replies 10 — Views 871