Annuity IRA to a mutual fund IRA
Sorry for the very basic question.
Client is attempting to move her rollover IRA (an annuity) at Company A to her rollover IRA (a mutual fund) at Company B.
Since the annuity will be surrendered, will this be considered:
a distribution (and therefore subject to the 1-rollover-per-365-days limitation)
OR
a transfer (trustee to trustee)
I know it depends on the paperwork submitted to the insurance (i.e. annuity) company…but I guess my question really is, is it even POSSIBLE to do a trustee-to-trustee transfer from an IRA annuity and to a mutual fund IRA?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2021-06-03 15:11
Yes, the direct transfer option is certainly available just as if the current IRA was not an annuity. Suggest that client has the transfer initiated by the receiving custodian B. Any transfer order form completed by client should be reviewed to make sure there is no indication of a distribution, just a transfer. Insurance companies may be more inclined to issue a distribution check if there is any doubt about the transfer request.