Re: Can Post-tax Dollars Be Added to an IRA Annuity?

[ShawnBrooks]

I have clients that have transferred or rolled over their IRA's/401K's into fixed indexed annuities. can they add money to these annuities that is post-tax i.e. extra cash they may have in savings?

 

[btaylor]

Re: Can Post-tax Dollars Be Added to an IRA Annuity?

I would suggest having your client ask their tax professional about IRA contributions. It's a good rule of thumb to avoid giving advice relating to taxes.

The last thing you want to do as an agent is give advice that turns out to be inaccurate. It will save you a lot of headache and give you credibility with the clients.

I know you were hoping to get an answer but trust me it is far better to say "I'm not sure" than give inaccurate advice.

Hope this helps.

 

[spartuna]

Re: Can Post-tax Dollars Be Added to an IRA Annuity?

It most likely will be treated as qualified money as it would be impossible to separate inside the same annuity.

 

[Larry Tew]

Re: Can Post-tax Dollars Be Added to an IRA Annuity?

If the annuity can receive additional contributions, you can put more money into an IRA assuming you're mindful of contribution limits, etc.

Understand this: all money being contributed to an IRA is POST-Tax UNTIL it's contributed to the IRA. Then it becomes PRE-Tax by way of the IRA deduction.

If you want to keep the POST-Tax money free from the restrictions and future tax bomb, then NO, you do not want to commingle those monies.