QLAC/IRA
If one has an annuity, that at present, is not QLAC qualified and the company that issued it has stated that it has no intention of having a QLAC. Can one transfer to another company that will have a QLAC without incurring RMD charges for the current year e.g.
RMD for 2015 is based upon value of annuity at DEC 31,2014 if one wants transfer to a QLAC in OCT,2015 and hes not yet received RMD amount for 2015. Can a person move the entire amount of the annuity to the new QLAC without incurring the taxes due in 2015 on the RMD for the original annuity.
Permalink Submitted by Alan - IRA critic on Fri, 2015-09-18 21:39
No. A QLAC purchased this year will result in the 12/31/2015 TIRA balance used for the 2016 RMD being reduced by the amount of the QLAC premium. The year end 2014 balance will not be reduced due to the later purchase of a QLAC this year. Note that the amount of your present annuity might exceed the max allowed under a QLAC which is 25% of the value of your TIRAs or 125,000, whichever is less.