Rules for Rolling 457 Assets in to an Annuity

Nov 28, 2016

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  1. calbear
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    calbear New Member

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    I'm an FE guy. I have a client who is 71 years old. Pretty good health. She has $57k in a 457 plan. Just entered the RMD phase. She is unhappy with the close to 0% return on her investments in the 457 account. Can she liquidate the assets in her 457 plan and purchase an annuity w/o paying income tax during the switch? If so, how does this impact the RMD requirement?
     
    calbear, Nov 28, 2016
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  2. Tahoe Ray
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    Tahoe Ray Guru

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    Yes. You can do a trustee to trustee transfer from the 457 to an IRA without creating a taxable event.

    She'll still have to take RMDs.
     
  3. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    Funny how quickly you get the answer you're looking for when you post the question in the correct Forum.;)
     
  4. calbear
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    calbear New Member

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    Haha. I'm learning.
     
    calbear, Nov 28, 2016
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  5. jacobtn
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    jacobtn Guru

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    I thought you got your answer in the FE forum as well. Of course the RMD requirement doesn't change.
     
    jacobtn, Nov 29, 2016
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  6. walthamny
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    walthamny Guru

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    If she does not need the RMD money and hates paying taxes, she could donate the RMD to charity. Her income will remain the same. RMD becomes tax free.
     
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