RMD annuity is an informal term for an annuity contract, typically inside an IRA or qualified plan, designed to facilitate required minimum distribution (RMD) withdrawals. These annuities may offer systematic withdrawal features, flexible income options, or calculation tools that help owners satisfy annual RMD rules while retaining investment or income flexibility. The term can also describe products marketed specifically for older clients who are already taking RMDs and want to combine compliance with principal protection or guaranteed income features. RMD annuities still follow standard tax rules for qualified accounts; the label focuses on convenience and design.

Advisors reference RMD annuities when clients nearing or past RMD age want help structuring distributions while maintaining a coherent investment or income strategy. Product comparisons may highlight ease of setting up automatic RMD payments, options to take more than the minimum when needed, and how guarantees or riders interact with withdrawals. Planning conversations address how RMD annuity distributions affect tax brackets, Social Security taxation, and Medicare premiums. While the term "RMD annuity" is marketing shorthand, understanding the features behind it helps advisors recommend contracts that make RMD compliance smoother without sacrificing long-term planning goals.