Withdrawing after transfering an IRA

My client transferred 1/2 of their IRA (trustee to trustee) to an annuity from a mutual fund. How does the 12-month transfer rule affect a future withdrawal of say 20% from either the new annuity or the original mutual fund? Can we make a withdrawal from either IRA?



What is the client’s age?



61



The 12 month rule applies to rollovers not transfers. You can do any number of trustee-to-trustee transfers with any given 12 month period.



Thanks. That’s what I thought, but a colleague had me doubting myself.



Of course, the annuity provisions with respect to surrender charges are a separate issue to be considered when moving funds out of the annuity.



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