client did not notify his annuity co. that he did not want his RMd for 2020
he requested an IRA transfer to another annuity
current co. sent his RMD direct deposit and then processed the transfer
to the new co.
Old company refuses to take back the RMD as contract is surrendered.
Is there any way to fix this at this point?
Alan,my annuity broker is telling me that an RMD cannot be classified as a Rollover even if new carrier would accept it.Your thoughtsthank you
Alan,my annuity broker is telling me that an RMD cannot be classified as a Rollover even if new carrier would accept it.Your thoughtsthank you
Alan,my annuity broker is telling me that an RMD cannot be classified as a Rollover even if new carrier would accept it.Your thoughtsthank you
Totally wrong. It is not an RMD for federal tax purposes per the CARES Act. All RMDs have been waived. Even if the annuity contract requires the distribution be made irrespective of the RMD waiver, it is not a statutory RMD and can be rolled over. If an annuity carrier will not accept a rollover contribution, client will have to open a new IRA or return it to a non annuity IRA if client already has one.
Permalink Submitted by Alan - IRA critic on Tue, 2020-12-22 15:47
If he has not rolled over a prior distribution made in the last 12 months, he can do a 60 day rollover of the direct deposit if still within 60 days of receipt of that deposit. Perhaps he can convince the new annuity carrier to accept a rollover contribution, otherwise he would need to deposit it in an existing TIRA or open one to accept it. He should not describe the rollover deposit as an RMD because it really is not or he could not roll it over.