Roth SPIA

If one puts funds from a Roth IRA into a SPIA (single premium immediate annuity) for $100,000 and receive payments in excess of the $100,000 originally paid in, would the excess be taxed or still considered tax free? Assume all the Roth had already met all five year rules so principal and earnings are tax free.



Once the Roth IRA is qualified (5 years and age 59.5), all future distributions will be tax free. So if you live long enough to collect 100k, any additional amounts you receive will be tax free gains. Since the insurance company will now have your 100,000  premium, any gains on their investments will be theirs. You will just collect tax free payments based on the terms of the SPIA annuity. 



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