Best company for short term annuity?

[Allen Trent]

My question, If one uses $5K of Roth IRA money to purchase one of these prior to age 81, can one then make flexible premium additions to the contract after age 81, say at ages 81, 82 and 83?

If they allow deposits, you can only put the same type of IRS labeled money into it. Do, if you open a Roth with them, the only type of future contributions or rollovers will have to also have them be Roth funds. You would have to have earned income from wages or self employment to make Roth contributions per IRS. IE you can't make after tax Non qualified deposits into an existing Roth account, etc. Once you place an IRS tax label identification on your account, it has that specific label forever & can't commingle various labeled monies

 

[LostDollar]

If they allow deposits, you can only put the same type of IRS labeled money into it. Do, if you open a Roth with them, the only type of future contributions or rollovers will have to also have them be Roth funds. You would have to have earned income from wages or self employment to make Roth contributions per IRS. IE you can't make after tax Non qualified deposits into an existing Roth account, etc. Once you place an IRS tax label identification on your account, it has that specific label forever & can't commingle various labeled monies

Thank you for answering. You missed the point of my question.

I do understand that one can not mingle Traditional Retirement, Roth Retirement, or Non-Qualified funds in the same account. I will have the ability to make IRA deposits for a few years after age 80.

The thing I am trying to find out about the ASIA (FIA type) annuity is whether or not the age 80 purchase limit also applies to the ability to add flexible premiums. If I buy the product before I turn 81, will I still be able to use the flexible premium provision to add premium to the in force contract at age 81 and beyond? As I said above, the ANICO CSR refused to answer the question. My first effort to deal with an agent resulted in the agent attempting to shunt me to another carrier and product.

 

[Allen Trent]

Thank you for answering. You missed the point of my question.

I do understand that one can not mingle Traditional Retirement, Roth Retirement, or Non-Qualified funds in the same account. I will have the ability to make IRA deposits for a few years after age 80.

The thing I am trying to find out about the ASIA (FIA type) annuity is whether or not the age 80 purchase limit also applies to the ability to add flexible premiums. If I buy the product before I turn 81, will I still be able to use the flexible premium provision to add premium to the in force contract at age 81 and beyond? As I said above, the ANICO CSR refused to answer the question. My first effort to deal with an agent resulted in the agent attempting to shunt me to another carrier and product.

Max issue age of 80 is just to initially issue the contract. Flexible premiums will be continue to be accepted unless specifically limited by amount or age in the Flexible premium language of the annuity contract. From the brochure I saw, there is no age restriction for ongoing premiums, but you may want to attempt to get a copy of their sample specimen contract to read that specific language regarding the after issue premiums

 

[LostDollar]

Max issue age of 80 is just to initially issue the contract. Flexible premiums will be continue to be accepted unless specifically limited by amount or age in the Flexible premium language of the annuity contract. From the brochure I saw, there is no age restriction for ongoing premiums, but you may want to attempt to get a copy of their sample specimen contract to read that specific language regarding the after issue premiums

With your comment, I went back and looked at the brochure I've been sent again. I found the following:

Flexible Premium A flexible premium in an annuity allows the owner to make premium payments in varying amounts and at different times, within set limits. This provides flexibility to contribute additional funds, manage savings, and potentially increase the annuity's value.

I used your post to get vocabulary,

Sample or specimen contract
After issue premiums

To craft another email to the person at ANICO who sent me the brochure, asking if I could have a sample contract. As a non-agent, I think I am pushing my luck there, but I'll see if I get a response.

 

[Tahoe Ray]

If anyone is still looking for a good MYGA, I recommend ELCO Mutual. The rate chart is attached.

If I'm going to write a B++ company, their rates better be awesome.

Those rates aren't very strong in today's market.

 

[LostDollar]

If I'm going to write a B++ company, their rates better be awesome.

Those rates aren't very strong in today's market.

The thing I liked about the Elco MYGA's when I saw their brochure last month was that I could buy a 2 or 3 year MYGA and then have a guaranteed renewal for up to 5 years from my initial purchase date at a rate of 5%.

(And yes, it is a constant refrain in my mind that TR, AT, and SCA say I should not be looking at a MYGA carrier with less than an A- Best rating.)

 

[scagnt83]

If I'm going to write a B++ company, their rates better be awesome.

Those rates aren't very strong in today's market.

Basically you are risking an E&O claim for a 15% free withdrawal and a subpar rate.