Transferring Roth IRA annuities to regular Roth IRA accounts
One of my clients converted 2 IRA annuities to Roth annuities.
We now want to now roll both annuities to a regular Roth IRA because he doesn’t need the annuities.
Do you know if this restarts the ‘5 year clock’ ?
Permalink Submitted by Alan - IRA critic on Wed, 2015-07-15 20:38
It does not. The date of the conversion still determines when the conversion 5 year holding period ends, unless she reaches 59.5 first. Also, if the conversions were the first Roth contributions, that year remains in place to determine when her Roth will become qualified. In other words, changing between a Roth IRA and Roth Annuity IRA is immaterial with respect to the Roth tax rules.
Permalink Submitted by [email protected] on Wed, 2015-07-15 21:10
I’m curious about what the difference was between the annuity contract values at time of conversion and the 1099s reporting the taxable amount? This would be the value of the living benefits if any, and I’d interested in a real world experience to get an idea of what that would be. Can you tell us that?-m