Living Benefit Payment from Qualified Annuity to IRA
Can a monthly living benefit payment from a qualified annuity be paid directly to an IRA account electronically? If so would these monthly payments be subject to the rollover rules allowing only 1 rollover per year? It would seem to me that since they are being paid directly from one trustee (the annuity company) to another (the investment firm) they would not be, but would like confirmation. The annuity company is saying they could code the monthly payments as a rollover but would need to create a 1099, requiring a 5498 rollover in from the investment firm.
Thanks for your help!
Permalink Submitted by Al Fry on Thu, 2008-04-10 21:10
They can do it as a trustee-to-trustee transfer, as long as the owner is under age 70 1/2.