I can't seem to model the purchase of an annuity using IRA funds? If I build the annuity showing a tax deferred source for the funds, it treats it as a distribution. That's not how it would work in real life, right?
I'm actually modeling a TIPS ladder in the IRA where every year for the next X year returns a known inflation adjusted annual amount. So for example, I want to use $1,000,000 of IRA funds to purchase this TIPS "annuity" to give X years of real taxable income with a 100% survivor benefit (because the ladder goes to the end of the second to die).
Anyway, I'm getting $1,000,000 in taxable income in year 1 with this approach. I know that I could just treat the annuity as already purchased and decrease the IRA balance accordingly. But initial account balances are the same across all scenarios, so this complicates comparing this to a scenario where a TIPS ladder is not purchased in that it requires manually adding/deleting the IRA each time I made other changes.
