UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: zgriner Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77389  
Subject: Re: Annuities Date: 9/13/1999 12:44 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Repost this question on the Tax board for a more complete answer.

Your associate has to worry about leaving too much money inside the IRA (don't forget the $650k estate limit). Plus, depending on when he started withdrawals, his heirs will have to deplete the inherited IRA accordingly.

And the previous posts are right. An annuity in an IRA is a crime. An annuity paid with withdrawn IRA money is a crime, too, as the annuity is taxed as ordinary income. It would be better to put the withdrawn money into a buy & hold stock portfolio, as the stocks would be given a stepped-up basis at your associates death.

There was a solution suggesting that if you were withdrawing money from an IRA that you did not need, that you paid a mortgage with that money. Since most of the mortgage payment would be tax-deductible, you would be getting the house, tax-free.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Kiddie Card Board
Should kids have their own credit card?
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:
Saul's Investing Discussions

INBK Q1 2015 Earnings Analysis
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 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.