Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: kingfool1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19483  
Subject: Re: tranfer annuity ? Date: 4/1/2000 10:55 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
razuli - you said:

"Does anyone have information on how to move the funds (i.e. annuity) to something that compounds at a higher rate, without of course having a tax liability ?"


Here are a couple of suggestions for you to consider:

a) Move to a New Insurance Company:

It sounds as if you may own a non-qualified annuity (e.g. not owned within an IRA). If so, you can typically do a 1035 tax-free exchange and exchange your existing annuity for a new one at a different insurance company. One important thing to find out is whether there are "early surrender or withdrawal charges" on your existing policy. These can often last up to 5 to 7 years from the date you purchased the annuity, but the penalty rate typically declines with each passing year. I suggest you check your policy or speak to the person who sold you the annuity to find this out.

b) Stay with the Existing Insurance company:

If your existing annuity is a variable annuity, you should be able to switch to another sub-account that has different investment objectives. You will need to check whether these other sub-accounts better meet your goals. This should be a tax-free exchange as it is within the same annuity.

If your existing insurance company has another different annuity whose returns are closer to what you are looking for, you may want to consider a tax-free 1035 exchange into this new annuity.

PLEASE NOTE THAT IF YOU DO A 1035 EXCHANGE INTO A NEW ANNUITY, YOU WILL TYPICALLY GET A NEW SET OF "early surrender or withdrawal charges". You should consider when you will need to withdraw the money in your annuity, before taking on a new set of surrender charges. There are some annuities out there with no "early surrender or withdrawal charges", but you may have to do some research to find them.

Hope this helps!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

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

The Story Behind the Story
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