In anticipation of the AMRF minimum withdrawal rule, which statement is true regarding withdrawals from an AMRF if no withdrawals were made in the year?

• A. The rule does not apply to AMRFs
• B. The rule applies only to ARFs
• C. The rule applies to AMRF withdrawals in the year
• D. The rule applies only when converting AMRF to ARF

Answer: (C)

The main idea here is that AMRFs have a minimum annual withdrawal rule that governs withdrawals made from the AMRF in any given year. Even if you end the year with no withdrawals, the rule is still relevant to withdrawals from the AMRF in that year, and it governs how withdrawals would be treated if you do take them or when you eventually convert to an ARF. In other words, the minimum withdrawal requirement is tied to withdrawals in that year from the AMRF, not limited only to ARFs or to conversions. That’s why stating that the rule applies to AMRF withdrawals in the year is the best framing.