How does the SECURE 2.0 Act affect required minimum distributions (RMDs) for taxpayers with annuities? Retirement accounts that include annuities are split into two parts, with the RMD being calculated on each part separately. When retirement accounts include both annutities and other components, SECURE 2.0 allows taxpayers to combine distributions from each portion to calculate their RMD. Annuities are not considered retirement income, so they are not affected by SECURE 2.0. Annuities are subject to 50% penalties for failure to take the full RMD, while other accounts have that penalty reduced. Mark for follow up