No. of Recommendations: 1
Just analyzing the TIRAs for RMDs is going to kill us if we don't convert or draw down a significant portion before then. I would think adding in the pension would just make it worse, and in no way better. We need to be very proactive in dealing with this from year one, or the problem will just compound.

Then I think you answered your own question. :) Seek the advice of a tax professional and get those conversions started.

The best thing about them is that you can undo them if you find out you did too much.

Is this with all types of annuities, or just variable? Are annuities subject to RMDs at all?

For annuities with surrender charges (many/most), you can simply cash them in at the end of the surrender charge period - often 5-7 years. IRA or non-IRA is not relevant. This also applies to both fixed and variable. Annuities are subject to RMDs for IRA dollars, not non-qualified dollars. Taxation on non-qal is "last-in, first-out" so the first dollars you take out of them will be any gains; to be taxed as income.

Looking also to diversify risk of payout from market turmoil.

A variable annuity will not necessarily protect against such though it can, for an additional fee. Fixed annuities would basically be treated like a zero coupon treasury held to maturity so it can but your yield will also reflect such limited risk.

Unfortunately, they want me to call to discuss it,

Ya, this side of the industry is not big on putting their information out there for everyone (including the competition) to see.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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 Glassdoor #1 Company to Work For 2015! 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