Variable Annuity — possible to rollover to IRA?
New clients each have a variable annuity in their respective IRA accounts. Is it possible to rollover the balance of the variable annuities to the IRA? I’m not sure they have held them beyond the surrender dates.
Permalink Submitted by Alan Spross on Thu, 2009-04-30 23:30
As long as the annuity is in an IRA, it can be rolled over to another IRA or a different IRA annuity, but subject to the annuity surrender charges and possible loss of any fringe benefits that have built up in the annuity, eg. a death benefit far larger than the annuity surrender value.
Permalink Submitted by [email protected] on Fri, 2009-05-01 02:21
A couple of things to consider. If the account value has crashed because of market loss, you might consider converting to a ROTH IRA. Your variable annuity might have a life insurance benefit attached, and if that’s important, you may not want to give up the variable annuity. If the losses bother you think about using the fixed (stable) account. Talk to a few different advisors.
Permalink Submitted by Al Fry on Fri, 2009-05-01 22:01
However if considering a Roth conversion, the taxable value is the FMV, which may be higher than the account value, if the VA has guarantees in excess of the AV.