Roth Applications for MYGAs

I was trying to set up a Roth MYGA with a no agent online only annuity company. The customer service rep that didn’t seem to understand how Roth IRAs work, said to check off the non qualified box, then check off other box, and input Roth IRA. I understand Roth funds are technically non qualified since the taxes have been paid already but other agents from other insurance companies say I should check off qualified and then Roth. Do insurance companies do it differently with the same result being that it is designated as a Roth or will checking off non qualified lead to problems with the IRS down the road?



I would leave that box blank, as it makes no difference. A Roth IRA can be funded either with qualified funds or non qualified funds. Just make sure that the IRA annuity is purchased in a Roth IRA and Roth IRA shows in the account title. The tax and distribution rules that govern are Roth IRA rules, not those of a NQ annuity. 



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