California IAP plan
I have a client that has an IAP from his pension. He doesn’t want to accept their annuity payment option but instead keep the lump sum available or left as a legacy, taking only RMD’s when he hits 70 1/2 (he’s 66). That said, can he move these funds into two separate annuities as a direct rollovers into two accounts without incurring any taxes due?
Permalink Submitted by Alan - IRA critic on Fri, 2016-09-09 18:55
If the annuity is a stated plan option, the plan should specify the other options. If there is a lump sum option and the plan is qualified, he must be offered a direct rollover to an IRA annuity or standard IRA. That would not be taxable or subject to withholding. I am not familiar with the term IAP.