408 B ROLLOVER TO IRA?
A. CAN A 408B BE ROLLED OVER TO AN IRA?
B. WHAT ADVANTAGE (TAX WISE) DOES A 408 B HAVE OVER AN IRA OR IRA OVER A 408 B?
THANK YOU,
DOUGLAS
A. CAN A 408B BE ROLLED OVER TO AN IRA?
B. WHAT ADVANTAGE (TAX WISE) DOES A 408 B HAVE OVER AN IRA OR IRA OVER A 408 B?
THANK YOU,
DOUGLAS
Permalink Submitted by Alan - IRA critic on Thu, 2016-04-07 17:55
408(b) is the section describing an IRA annuity. 408(a) is a non annuity IRA. They are both subject to the usual IRA rules, and rollovers or direct transfers can be done between these types of IRA in the usual manner. The tax rules are the same including the RMD rules, although there are some RMD rule differences once an IRA annuity is annuitized and no longer has an account value. The IRS has not defined how to handle an IRA with basis from non deductible contributions once any portion of an IRA is annuitized. Once annuitized over the IRA owner’s life or life expectancy or joint LE with the beneficiary, the annual distribution is deemed to be the RMD for the IRA annuity contract only and RMDs can no longer be aggregated with regular TIRA accounts.