Roth annuity to cash?
I simply want to rollover a variable annuity that has no penalties now into cash so we can setup an etrade account.
Any issues we need to be aware of before closing down the annuity?
Jack
I simply want to rollover a variable annuity that has no penalties now into cash so we can setup an etrade account.
Any issues we need to be aware of before closing down the annuity?
Jack
Permalink Submitted by Jack Funderburk on Thu, 2009-12-24 16:29
I meant to say it is an annuity setup as a Roth currently and the rollover would, of course, be directly into a Roth. Doesn’t seem like there would be any issues but one never knows the way the government rules work.
Permalink Submitted by Alan Spross on Thu, 2009-12-24 18:07
I think the only question is whether the insuror will do a direct transfer to the E Trade account or just issue a check to the Roth owner. A check to the owner would use up the one indirect rollover permitted over a 12 month period. This would not be reported if done by direct transfer, but with a check to the Roth owner, it would be a reported distribution and rollover on line 15a and 15b of Form 1040.
The main pitfall is usually surrender charges or possible supplemental exit fees etc when a VA is surrendered, but that is apparently not a problem here.