Annuity in an IRA
If an individual is 63 and they want to give an asset that is an annuity in an IRA to a child that is 45; is there any way to give the asset or the amount of the asset without being taxed on the sale and distribution of some or all of the annuity in the IRA (they don’t want to wait for death by just having the child listed as a beneficiary.
Permalink Submitted by Alan - IRA critic on Thu, 2013-02-21 17:28
IRA assets cannot be gifted while living. The annuity would have to be cashed in, the cash distributed from the IRA as a taxable distribution and a new NQ annuity purchased for the child with the proceeds. Gift exclusion limited to 14k in 2013 or 28k if spouse consented to gift splitting.