5yr deferral contracts
Have a client who inherited 5 non qualified contracts from an Uncle back in 2018.
They are supposed to be liquidate prior to the 5th anniv. date of death of Uncle.
Questions:
1. Due to Covid, do they have an extra year to liquidate the contracts?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Tue, 2022-03-22 16:56
The CARES Act provision for not counting 2020 for purposes of the 5 year rule does not apply to NQ annuities. However, the insurance companies may voluntarily apply it, so you would have to ask the client’s insurance company if client has until 2024 to drain the annuity.