ira transfer
i’m 75 and retired in 2015. took out a structured capital strategies 16B (IRA) 5 year plan in july 2017. been with prudential since 1993 and don’t have any problems with them. plan will be done in july 2022. have been getting a rmd from this plan. when july 2022 comes around i would like to go in a different direction with this investment (100K). would like to make a tax free transfer or rollover without getting blasted with a huge tax bill. have no plans to withdraw funds from the new investment. any ideas? thanks Denny
Permalink Submitted by Alan - IRA critic on Thu, 2022-04-21 21:34
As long as your current plan is an IRA, you can do a direct trustee transfer to any other IRA custodian you wish. These are non reportable and there are no taxes due. That said, whenever you leave an insurance product there is likely to be some form of exit free, but if the current contract ends in July it should not be much. One issue is your 2022 RMD, and that depends on whether your current contract has been annuitized or not. You may want the insurance company to distribute your RMD for 2022 before doing the transfer. Of course, if you have other IRAs you can complete your total RMD from any combination of them.
Permalink Submitted by charles welch on Fri, 2022-04-22 01:17
thank you very much for your reply. will have a talk with the agent about annuitized. would like the rmd to continue.i also have two other investments that have a rmd with them. i am going to assume my agent knows the ropes on this stuff because i’m going to ask. thanks again for your information. Denny