Participants must start taking "required minimum distributions" (RMDs) from retirement accounts by age 70 1/2.
If the owner/annuitant dies before RMDs have begun, the beneficiaries may "stretch" a qualified annuity (deferring paying taxes on the money) by putting off taking any of the money for five years or having it paid over their life expectancies.
If the owner/annuitant dies after RMDs have begun, the beneficiary can take the balance of his or her beneficial interest over his or her life expectancy or the owner's life expectancy, whichever is longer.
A surviving spouse has another option unavailable to other beneficiaries. he or she can re-title the annuity in his or her name, continuing the contract, withdraw money from the contact or arrange income payments. This amounts to an IRA rollover.
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