Golfer68ParticipantStatus: PhysicianPosts: 69Joined: 02/08/2017
I just inherited an annuity from my grandma. I believe the contributions were made pretax. Am I right that my two options are:
1) take as a lump sum and pay income tax on full amount
2) Roll over into an inherited IRA and begin to take RMDs next year
There are no other reasonable options correct?July 27, 2019 at 11:30 am MST #234072jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 8113Joined: 01/09/2016
You cannot r/o an inherited annuity from your grandma into an inherited IRA. You are required to distribute the balance over a period of 5 or fewer years. You may have the ability to stretch payments out over your lifetime but I’m not sure if that’s available to “qualified” (pre-tax) annuities.
We don’t deal with annuities much – maybe one of the insurance guys can confirm the accuracy of my last statement.Golfer68ParticipantStatus: PhysicianPosts: 69Joined: 02/08/2017
Sorry, she did not inherit it, it was hers originally … I am inheriting itJuly 27, 2019 at 1:55 pm MST #234123Faithful StewardParticipantStatus: Financial Advisor, Small Business OwnerPosts: 509Joined: 06/12/2017
First, are you sure the annuity was held inside an IRA? Or, could it possibly be a non-qualified annuity? You never made this clear in your original post.
Michael Peterson, CFP® | Faithful Steward Wealth Advisors
https://ProsperousPhysician.com | (717) 496-0900July 27, 2019 at 4:29 pm MST #234167