She Bought an Annuity Inside Her IRA at 72. The Check Was Guaranteed. The RMD on It Wasn’t Covered, and the IRS Fined Her 25%.

A taxpayer reportedly relied on predictable annuity payments and assumed the IRS was satisfied, but discovered a separate tax treatment for the remainder of her IRA. She received a bill with a five-figure penalty, underscoring the risk of unexpected IRS compliance/tax-code interpretations for retirement accounts.