Stretch NQ Plan??

[lbritt]

One of our agents is filing a death claim on a NQ annuity valued at around $700k. The cost basis is $550k. The beneficiaries (daughter and son) would like to continue the annuity in some form or fashion. I'm trying to find a company that will allow a Stretch-NQ plan in order to write two annuities without any tax consequences.

So far Aviva, American Equity, North American, and National Western won't do it. Any idea of a company who can?

 

[padthaiforlunch]

They have to pay the IRD. After that they can buy what they want.

 

[carlydelise]

ING will allow for a NQ Stretch as long as it is stretched before reaching ING.

 

[padthaiforlunch]

You sure about that? He's talking non-qualified money.

 

[DHK]

Why do they want to continue the annuity?

If it's to avoid taxation, sorry.

If it's because they don't need the money, why not turn the annuities (after taxes are paid) into a SPIA to fund a life insurance policy?

 

[BNTRS]

It's called a MEC, but you sort of have to be in it before you die.

 

[loginname]

Try Lincoln or Sun Life. Most companies won't allow a transfer in of funds that are in NQ stretch status because IRS regs aren't 100% clear on allowing this. I've found many companies will allow the NQ stretch if the funds are already in their contract.

 

[carlydelise]

Positive ING will do it. Working on one now. As long as the first RMD is taken before the anniversary of the original owners death they will be able to stretch out the tax burden over their lifetime.

 

[HarryRenard]

Positive ING will do it. Working on one now. As long as the first RMD is taken before the anniversary of the original owners death they will be able to stretch out the tax burden over their lifetime.

NQ stands for Non Qualified.

 

[carlydelise]

Yes but stretching a NQ annuity will require RMD's. I know what the difference is. Call ING they pride themselves on doing them. If it wasn't allowed I wouldn't be doing one.