Roth Conversion of VA w/ Guaranteed Death Benefits
72 yr old client has variable annuity with account value of 70K due to market conditions. The same annuity has a guaranteed death benefit of 250K. If we make a Roth IRA conversion, what is the taxable amount of the conversion?
Permalink Submitted by Alan Spross on Thu, 2009-03-05 05:11
The IRS has issued regulations on calculating the conversion valuation, but the client will have to secure that figure from the insurer. It will be considerably more than 70k. See atached:
http://www.centerfortaxstudies.com/blog/taxnews/2008/07/29/final_regulat…
Sorry, the active links were disabled.
Permalink Submitted by Alan Spross on Thu, 2009-03-05 05:12
Correction – the ability to link has been restored! Good news.