Roth conversion
Client has Mutual fund investment in traditional IRA. He wishes to transfer to an annuity. Can it transfer it in as a Roth and if so who would issue the conversion info to the IRS? Or must he convert first and then make the transfer? Please advise?
Permalink Submitted by Alan Spross on Mon, 2010-09-27 20:47
Either way.
1) Could convert the TIRA to Roth with current custodian, then transfer new Roth with cash to annuity company Roth and then purchase the annuity.
2) Could transfer TIRA to the annuity custodian TIRA and then convert it there to a Roth annuity.
3) Could convert TIRA directly to a Roth IRA with annuity company.
Check with annuity company to determine procedure that they require. But if the conversion would be recharacterized, then option 2 or 3 is better.