Bene NQ annuity
We have a client that has a beneficiary NQ annuity (funds were inherited from her mother), client is looking to do a 1035 exchange to another annuity as a beneficiary NQ, can this be done?
We have a client that has a beneficiary NQ annuity (funds were inherited from her mother), client is looking to do a 1035 exchange to another annuity as a beneficiary NQ, can this be done?
Permalink Submitted by Alan Spross on Fri, 2011-06-03 18:07
It can be done under IRS rules, but it may take some checking to find an insuror that will accept a 1035 on a non spouse inherited annuity. While checking with insurors, it is important to find out what they will require in the way of distributions from the account. Normal IRA RMD rules do not apply to NQ annuities, but company policy or state law will determine what her withdrawal requirements may be.
Permalink Submitted by Eric Woodfill on Fri, 2011-06-03 19:52
There is a time frame with a non spousal beneficiary/inherited non-qualified annuity; the 1035 has to be done within the first 5 years. I am about 100% on this.