IR Annuity
I want to transfer my IRA annuity at insurance company A to a regular IRA account at Brokerage B. I’ve annuitized the payments to avoid surrender, and am having them sent to Brokerage B, IRA FBO my name. Insurance company A contends that’s a taxable distribution. Brokerage B says it’s a custodian-to-custodian transfer (checks are not made out to me…). Who is right?
Permalink Submitted by Al Fry on Thu, 2007-11-01 02:26
Annuitized payments qualify as the RMD distributions, so they are not rollover-eligible. Sorry to say, I think A is right, and B is incorrect. Even if you are under age 70.5, annuitized payments are generally not eligible to be rolled over.