variable ira annuity loss
I have a client who is cash surrendering a variable ira annuity with no penalty but a 50k loss that he will roll over into another ira. can he write off any of these losses? I have been told he can write these off only if he receives the $$ and does not do a direct transfer to the new ira. His wife also has a large loss on a 403 b and wants to transfer it out as well. any way to write off her loss if I do a direct transfer of the 403 b ?
Permalink Submitted by Alan Spross on Mon, 2008-02-11 05:32
A traditional IRA annuity loss can only be taken if all traditional IRA accounts are closed. With the rollover, this would not happen. This is different than liquidating a non qualified annuity, as losses from these can be considered per individual annuity.
As for the wife’s 403b, if the account was distributed, there could possibly be a loss to the extent the value received was less than the cost basis, but the 403b likely has a very low cost basis, if any. A direct transfer would even eliminate that remote possibility.
Permalink Submitted by Sharon Allen on Mon, 2008-02-11 17:13
[quote=”[email protected]“]I have a client who is cash surrendering a variable ira annuity with no penalty but a 50k loss that he will roll over into another ira. can he write off any of these losses? I have been told he can write these off only if he receives the $$ and does not do a direct transfer to the new ira. His wife also has a large loss on a 403 b and wants to transfer it out as well. any way to write off her loss if I do a direct transfer of the 403 b ?[/quote]