Rolling Over a Deferred Annuity?

[turkjey5]

Suppose you had a deferred annuity (say 10yrs) and the accumulation stage ended. Can you take that sum and roll it into another deferred annuity (say 10 yrs) thereby retaining the untaxed benefit of the accrued gain OR do you have to begin taking payments? 1035s seem to involve annuities that haven't come to the end of their term, but maybe I'm wrong.
Thanks!!

 

[VolAgent]

You would be wrong. (20 characters)

 

[Norwayguy]

Suppose you had a deferred annuity (say 10yrs) and the accumulation stage ended. Can you take that sum and roll it into another deferred annuity (say 10 yrs) thereby retaining the untaxed benefit of the accrued gain OR do you have to begin taking payments? 1035s seem to involve annuities that haven't come to the end of their term, but maybe I'm wrong.
Thanks!!

Yes you can 1035 that annuity into a new deferred annuity assuming the existing policy hasen't met its maturity date and has already begun annuitization. I assume when you say the accumulation stage has ended you really mean the surrender charge period has ended as opposed to the policy having annuitized itself.

Please note some states impose new premium taxes on nonqualified exchanges. So make sure the change you are making is in your clients best interest, 10 years ago minimum guarantees where much higher than they are now.

 

[arnguy]

PA doesn't have a premium tax. They did a few years ago, but that was repealed. BTW Peter, did you mean to say it hasn't been annuitized?

 

[Norwayguy]

PA doesn't have a premium tax. They did a few years ago, but that was repealed. BTW Peter, did you mean to say it hasn't been annuitized?

Thats what I said....I'm not in PA nor did I take the time to see what state the poster was in which is why I said some states.

 

[arnguy]

Well, they way you wrote that sentence it is vague and can be construed as saying that the annuity has already been annuitized which, of course, would be wrong.

 

[Norwayguy]

Well, they way you wrote that sentence it is vague and can be construed as saying that the annuity has already been annuitized which, of course, would be wrong.

I will cease arguing with you on Grammatical issues

 

[VolAgent]

I will cease arguing with you on Grammatical issues

But will you desist?

 

[Norwayguy]

But will you desist?

Picture me on my knees hands in the air, I surrender

 

[annuityseller]

that's something I don't need to see!!!!!!!!!!!!