Can An Annuity Be Rolled Into A 401K?

1. 

   0 POINTS

   

   Contact David Racich Contact David Racich by filling out the form below

   
   Name
   

   
   Email
   

   
   Phone Number
   

   
   Message
   

   Please leave this field empty.
   

   Δ

   Contact Me

   view profile
   David RacichPRO

   Fountain Hills, Arizona

   If you’re addressing existing non-qualified annuity and you desire to use in funding an 401(k), the following cautions are advised. Your name may be the same on the annuity as well as the IRA, but it reality, your changing ownership registration. If that happens your annuity, if effect, is being surrendered and that surrender will trigger an ordinary income tax event on the gain in the policy. If you’re under age 59 ½ an additional 10% penalty will be assessed as well. And don’t forget non-qualified annuity basis is tax free, by inserting it into an IRA; you give up the tax free status of basis because all IRA distributions are an ordinary income tax event. Before moving forward with any changes consult a tax advisor or CPA.
    

   Answered on June 20, 2013

   +0

   1 0

   +1 this answer

   flag this answer

   view more answers by David Racich
Did you find these answers helpful?
Yes
No
Go!

Add Your Answer To This Question

You must be logged in to add your answer.