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A nonqualified annuity in a Roth account: This type of annuity is purchased in a Roth 401(k), Roth 403(b) or Roth IRA, which are all after-tax retirement accounts. Any normal distribution from ...
The beneficiary's relationship to the purchaser and the payout option that's selected can determine how an inherited annuity is taxed. Qualified vs. Non-qualified Annuity
You will have to make a required minimum distribution this year as a result. The new rule applies to anyone who inherited an IRA from someone who passed away after Dec. 31, 2019.
New rules are expected this year on inherited IRA withdrawal. The era of the stretch IRA Before 2020, beneficiaries could benefit from what was known as the “stretch IRA” provision.
Also, qualified annuities are subject to the same required minimum distribution (RMD) rules as standard retirement funds, unless they’re part of Roth IRAs. Non-Qualified Annuity Taxation
Required minimum distributions (RMDs) are minimum amounts that U.S. tax law requires one to withdraw annually from traditional IRAs and employer-sponsored retirement plans and pay income tax on that withdrawal. In the Internal Revenue Code itself, the precise term is "minimum required distribution". [1]