Are you worried that forced Required Minimum Distributions (RMDs) are going to eat into your annuity and permanently reduce your guaranteed lifetime paycheck?

In this video, Shawn Plummer from The Annuity Expert answers whether taking an RMD will negatively impact your contractually guaranteed income. The answer depends entirely on whether you have already "turned on" your lifetime income stream!

If you are already receiving your lifetime paycheck, the great news is that your payments automatically count toward your RMD. If your RMD is higher than your standard payout, most modern "RMD-friendly" contracts will simply bump up your payment for that year without hurting your future guarantees! However, if you are forced to take RMDs before you turn on your lifetime income, those withdrawals could proportionally reduce your future income  ...