RMD Rules
RMDs NEVER apply to this type of account registration, so a request for one is a hard NIGO.
What is a non-qualified account?
The RMD Basis Value (Entire Interest Value) is the 12/31 account value plus this.
What is the Actuarial Present Value (APV)?
Delaware Life mails the annual RMD letters on this date.
What is Jan 31st
A client wishes for the RMD value to be paid directly to an individual 3rd party, their grandson- what is needed?
This cannot be done directly by DLIC; instead, once the RMD is paid to the client, they can pay the individual 3rd party directly.
This form, found in the Forms Wizard, is used for a one-time RMD on fixed and fixed index annuities.
What is the "Required Minimum Distribution One-time Withdrawals for FA and FIA" form? IND-GS0010RMD
This type of Qualified Account only has an RMD after a death claim, to be satisfied by the beneficiary.
What is an Roth IRA
Divide the RMD Basis Value by this to get the RMD amount.
What is the Life Expectancy Factor?
A client has an RMD payment paid directly to a charity of their choice, who is the taxable party for the RMD value?
Who is the policy owner
A client wants their RMD plus extra money. This form allows it; the Auto-RMD form doesn't.
What is the One-Time RMD form?
The client can enter the prior year's 12/31 value (the Entire Interest Value) in this section of the One-Time RMD form, and Delaware Life will calculate the RMD.
What is Section 2 on the RMD Form (Entire Interest Value/Fair Market Value)?
SECURE 2.0 raised the RMD age from 72 to this age.
What is 73?
The client owns a traditional IRA annuity with Delaware Life and a traditional IRA at another carrier. What are the rules requiring satisfying these individual IRAs from the same account?
They can satisfy both RMD values from either, or both accounts (Penalties may apply)
If the federal withholding box is left blank, withholding defaults to this. It's 10% only if there's never been a prior withdrawal.
What is the percentage elected on the previous withdrawal?
For a APVA product, the owner checks "additional funds" on an Auto-RMD request. This is the type of NIGO.
What is a soft NIGO? (The owner must choose Auto-RMD without extra funds, or a One-Time RMD.)
For direct deposit on a one-time withdrawal using banking already on file, the client must verify this on the form.
What are the last 4 digits of the bank account number?
SECURE 2.0 cut the IRS penalty on the amount not withdrawn from 50% to this. It's applied at the IRS's discretion, not Delaware Life's.
What is 25%?
Delaware Life won't calculate an RMD on its own for an account in this situation, because the funds weren't with Delaware Life on the prior 12/31.
What is an account transferred in during the same tax year?
This is not allowed on any RMD distribution, under any circumstances.
What is a transfer or rollover?
The policy has a collateral assignment, so the RMD request must also be signed by this party.
Who is the Assignee
Instead of completing section 2 of the RMD forms, for a contract opened in the same tax year, the client can satisfy the RMD by sending the one-time withdrawal form plus this, on the prior carrier's letterhead.
What is a copy of the previous carrier's statement or RMD letter?
A first-time RMD can be postponed to this date, which can cause two taxable events in one year.
What is April 1 of the following year?
To have the RMD recalculated with a different life expectancy table, the client sends a letter of instruction (LOI) naming either the Uniform Lifetime Table or this table.
What is the Joint Life and Last Survivor Expectancy Table?
Under no circumstances, with no exceptions, can an RMD be this.
What is backdated?
A Variable contract's RMD would drop the value below the product minimum. Instead of NIGO-ing it, Delaware Life does this.
What is process only the amount above the minimum? (Fixed and fixed index contracts close automatically instead, unless there's a collateral assignment.)
On the APVA RMD Form, The owner checks "One-time payment for this year" and also fills in the Payment Frequency section. How can this NIGO be resolved?
Confirm by phone or with updated paperwork whether the owner wants a one-time RMD or an Auto-RMD.