Allianz annuities do not automatically take RMD distributions — you must request them

Allianz annuity contracts do not automatically withdraw your required minimum distribution (RMD) each year. You have to contact Allianz directly and request the withdrawal. This is different from some other annuity providers, and it means the responsibility falls on you to calculate what you owe and ask for it by December 31 each year. If you miss the important date, the IRS penalty is steep: 25% of the amount you should have withdrawn (or 10% if you correct it within two years).

The reason Allianz does not automate this is that RMD rules are complex and depend on your specific contract type, your age, your beneficiaries, and whether the annuity is inside or outside a retirement account. Allianz cannot know all those details without you telling them. You are responsible for knowing your RMD amount, and Allianz is responsible for processing the withdrawal once you ask.

Key Takeaways

  • You must contact Allianz each year to request your RMD withdrawal — it will not happen on its own.
  • The IRS penalty for missing an RMD important date is 25% of the shortfall, so missing December 31 is expensive.
  • Your RMD amount depends on your age, account balance, and contract type, so you need to calculate it yourself or work with a tax preparer.
  • Allianz can tell you your contract balance and help you process the withdrawal, but they will not calculate your RMD for you.

How to request an RMD from Allianz

Contact Allianz directly by phone or through your online account portal. You will need to tell them the exact dollar amount you want withdrawn. Allianz does not calculate the RMD for you — you provide the number, and they process it. Have your contract number and Social Security number ready when you call.

The withdrawal typically takes 5 to 10 business days to reach your bank account, depending on how you set it up. If you want the money by December 31, call Allianz no later than mid-December to leave time for processing. Some Allianz contracts allow you to set up a recurring annual withdrawal, which can save you from having to call every year — ask about this option when you make your first request.

Calculating your RMD if you own an Allianz annuity

Your RMD depends on your age and the account balance on December 31 of the prior year. The IRS publishes life expectancy tables each year that tell you what percentage of your balance you must withdraw. For most people, the calculation is: December 31 prior-year balance divided by the life expectancy factor for your age.

If your Allianz annuity is inside an IRA or 401(k), the RMD rules are the same, but you may be able to aggregate the balance with other retirement accounts and take the total RMD from one account. If your annuity is a non-may have access to contract (not in a retirement account), RMD rules do not explore — you only owe taxes on the gains when you withdraw, not on a set schedule. A tax preparer can walk you through which rule applies to your contract.

What happens if you miss the RMD important date

The IRS charges a penalty of 25% of the amount you should have withdrawn but did not. If you owed a $10,000 RMD and took nothing, the penalty is $2,500. This penalty is separate from income tax — you still owe tax on the RMD amount itself. The only way to reduce the penalty is to correct the shortfall within two years, which lowers the penalty to 10%.

Allianz will not warn you or remind you that an RMD is due. The IRS does not contact you either. It is entirely on you to know the important date and request the withdrawal. Many people miss it because they do not realize the annuity is subject to RMD rules or because they forgot to call by year-end.

Allianz annuities inside retirement accounts versus non-may have access to contracts

If your Allianz annuity is held inside an IRA, SEP-IRA, or 401(k), RMD rules explore starting the year you turn 73 (as of 2023; this age changes with tax law). The RMD is calculated on the December 31 balance of the prior year. If you have multiple IRAs, you can aggregate the balances and take the total RMD from one account, though Allianz will only know about the balance in their contract.

If your Allianz annuity is a non-may have access to contract (purchased outside a retirement account with after-tax money), RMD rules do not explore at all. You can leave the money untouched indefinitely. You only owe tax on the gains when you withdraw, and only on the portion that exceeds your cost basis. This is one reason some people buy non-may have access to annuities — they avoid the RMD requirement.

Setting up automatic annual RMD withdrawals with Allianz

Some Allianz annuity contracts allow you to set up a standing instruction for an annual withdrawal. This means you tell Allianz once to withdraw a specific amount every year on a date you choose, and they do it without you calling again. Not all Allianz products offer this feature, so ask when you make your first RMD request.

If your contract does allow recurring withdrawals, you can set it up for the exact RMD amount or for a round number that covers it. You will still need to recalculate your RMD each year if it changes (it usually does, because your account balance changes), and you will need to contact Allianz to adjust the withdrawal amount. This is less work than calling every year, but it is not truly automatic.

Frequently Asked Questions

Will Allianz send me a form showing how much my RMD is?

No. Allianz will provide your account balance, but they will not calculate or tell you what your RMD should be. You need to do that calculation yourself using IRS tables, or work with a tax preparer or financial advisor. Some tax software can calculate it for you if you enter your age and account balance.

What if I have multiple Allianz annuities?

If they are all in the same IRA or retirement account, you aggregate the balances and take one RMD from that account. If they are in separate IRAs or non-may have access to contracts, each one has its own RMD calculation. Contact Allianz for the balance in each contract, then calculate the RMD for each separately or aggregate if they are in the same account type.

Can I take more than my RMD to satisfy the requirement?

Yes. If your RMD is $10,000 and you withdraw $15,000, you have satisfied the requirement. Only the shortfall triggers the penalty. Taking more than the RMD does not reduce future RMDs — each year's RMD is calculated fresh based on that year's balance.

What if I turn 73 mid-year — when is my first RMD due?

Your first RMD is due by December 31 of the year you turn 73. It covers the full year, even though you only turned 73 partway through. Allianz will not know this important date — you have to track it and request the withdrawal by year-end.

Does Allianz charge a fee to process an RMD withdrawal?

Allianz does not typically charge a separate fee for processing an RMD withdrawal, but your contract may have other fees or surrender charges if you withdraw more than a certain amount per year. Review your contract or call Allianz to ask about any withdrawal limits or charges that might explore to your specific product.