Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: Changing annuities into an index fund Date: 8/23/2000 9:17 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, smr6021, and welcome. You asked:

<<Can I close the TDA annuity account that I've had with VALIC for many years and place it into an index investment something like Vanguard 500 with out incurring any kind of a tax problem, I'm new at this stuff, thanks. >>

You will have to be more specific as to what you actually have, a Tax Sheltered Annuity (one purchased within an IRA or retirement plan like a 403b) or a Tax Deferred Annuity, a plain ole vanilla product bought with after-tax dollars that is not part of an IRA or qualified retirement plan. If you bought a TSA, then it might be possible to surrender that beast and move to a different vehicle without incurring income taxes or penalties for an early withdrawal. If you bought a TDA, then the answer would be no. All you can do in a TDA is a tax- and penalty-free 1035 exchange for another annuity that might let you invest in better mutual fund look-alikes. Otherwise, on surrender you will pay taxes and penalties on any gain in the annuity.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement