connie dello buono CA life lic ins 0G60621 motherhealth@gmail.com san jose california 4088541883 , call for free financial info , list of living trust lawyers ; what is required for minimum distribution of a traditional IRA

1. Required Minimum Distribution (RMD)
FAQS
Aviva Life and Annuity Company
www.avivausa.com
What is a Required Minimum Distribution (RMD) for a Traditional IRA?
An amount of money that the Internal Revenue Service requires a policy owner to withdraw
from a Traditional IRA account by April 1 following the year in which the policy owner turns age
70 1/2. The policy owner must continue to take out the required amount each year thereafter.
There are other quali ed accounts such as 403(b) plans or pension/pro t sharing plans that may
also require an RMD at 70 1/2 if the owner is no longer working. For more information, please
consult your tax advisor or call us at our Customer Service toll-free number: 1-888-ANNUITY (1
888 266 8489).
Do I have to take an RMD every year?
Yes. You will need to take your RMD each year by December 31. You may defer your rst RMD
to April 1 of the year following the year in which you turned age 70 ½. All subsequent RMDs
must by taken by December 31.
I did not have to take an RMD in 2009. Do I have to take an RMD in 2010?
Yes. The Worker, Retiree, and Employer Recovery Act waived the RMD for 2009. The waiver
only applied to 2009, and was not extended to 2010. You will need to take your RMD by
December 31, 2010.
How is the RMD calculated?
The RMD is calculated by dividing your IRA balance as of December 31 of the previous year by
your life expectancy. The IRS provides a table of life expectancy factors to use in this calculation.
The formula can be described as:
Accumulated Value
as December 31 ÷ IRS Determined
Life Expectancy Factor = Required
Minimum Distribution
Do I need to calculate my RMD myself?
No. Aviva will calculate your RMD for you for your contract(s) at Aviva.
Do I have to request my RMD each year?
You are required to take an RMD each year. Aviva can calculate and send your RMD to you
automatically, if desired. The amount can be sent via a systematic withdrawal on a monthly,
quarterly, semi-annual, or annual basis, depending on your preference.
11/10

2. Required Minimum Distribution (RMD)
FAQS
Aviva Life and Annuity Company
www.avivausa.com
How do I request my RMD?
If you would like us to send your RMD automatically each year, you may complete an RMD request form.
Please indicate your desired frequency and date.
What happens if I don’t take my RMD?
If you do not meet the RMD, the IRS will impose a 50% tax on the amount you failed to take. We
recommend you consult a quali ed tax advisor regarding the options available to you, should you fail to
meet your RMD.
Will you let the IRS know that I have met my RMD so that I am not penalized?
Yes. The information is provided to the IRS on a tax form. The tax form is IRS Form 1099-R. We will mail
a copy of the form to you so that you can use the information to le your tax return. The form will be
mailed no later than January 31.
Will I be taxed on my RMD?
The RMD is considered a taxable distribution. However, whether you will be taxed on the distribution
depends on your personal tax situation. Please talk with your tax advisor regarding any questions you
may have about reporting this income on your tax return.
I have other IRAs. Do I have to take my RMD from this contract?
You do not have to withdraw funds from this contract. However, you do have to withdraw the funds
from one or more of your IRA contracts before December 31. We recommend you consult your agent
or a quali ed tax advisor regarding the advantages or disadvantages of taking your RMD from other
contracts.
11/10