IRA to Fixed Index Annuity
After I roll my IRA to a Fixed Index Annuity,, If after the surrender charges run out 10yrs and I remove my money from the contract, is their still an IRA shell around the money or does it become all taxable.
After I roll my IRA to a Fixed Index Annuity,, If after the surrender charges run out 10yrs and I remove my money from the contract, is their still an IRA shell around the money or does it become all taxable.
Permalink Submitted by Alan - IRA critic on Thu, 2016-02-04 20:57
It is still an IRA. IRA tax rules trump annuity tax rules and no taxes are due until a distribution is taken from the IRA. The IRA still becomes subject to RMDs at age 70.5 so be careful if the 10 years will run to age 70.5. If you move IRA money now, best to use direct trustee transfer because of the restriction on rollovers.