NQ Annuity distribution
Individual 1035 exchanged some money from one non-qualified annuity to another, in late December individual received check in the mail from prior carrier stating they inadvertently calculated a Market value adjustment during the original transfer and the checks being received in the mail are for the adjustment that should not have applied. Can the individual deposit these funds in the current annuity contract to avoid taxable distribution or is it too late?
Permalink Submitted by Alan - IRA critic on Wed, 2017-01-18 04:09
The policy holder cannot contribute the funds, and that would not avoid a 1099R anyway. However, it might be worth calling the old carrier and asking them why these funds were not forwarded by them to the new carrier to complete the exchange, and offer to return the checks if they will now do that.