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Author: cymbeline Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Rolling annuities? Date: 9/4/1999 11:16 PM
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I have two annuities. One says "Flexible Annuity, IRA" and the other says "Flexible Annuity, TSA" on the report the company sends me. Can I roll both of them over into a self directed account at Scottrade or Discover (the two that I have narrowed it to)?
Is there any difficulty in one being IRA and the other TSA?
I asked my "advisor" if they could be transferred to a mmarket account with him and he said he could do that. Would it be better to have him do that first and then transfer to another company?
Pixy et. al. I am counting on you to help me over the inertia hump!
Thanks in advance, Franke
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Author: peppermintpatty Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13718 of 75340
Subject: Re: Rolling annuities? Date: 9/5/1999 11:24 PM
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Franke - The TSA account is related to your work - if you've left the job which allowed the payroll deductions that funded the TSA you may move the money. The IRA account may be moved without restriction. In both cases you'll want to transfer to another IRA account (rollover) to avoid tax + penalty, unless you are 60+ years of age. And in both cases you'll need to review what "surrender penalties" may be imposed by the annuity issuer before beginning any transfer... Read the details!

Good luck, PP

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13723 of 75340
Subject: Re: Rolling annuities? Date: 9/6/1999 8:33 AM
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Franke asks:

<<I have two annuities. One says "Flexible Annuity, IRA" and the other says "Flexible Annuity, TSA" on the report the company sends me. Can I roll both of them over into a self directed account at Scottrade or Discover (the two that I have narrowed it to)?
Is there any difficulty in one being IRA and the other TSA?
I asked my "advisor" if they could be transferred to a mmarket account with him and he said he could do that. Would it be better to have him do that first and then transfer to another company?>>


You may definitely surrender the annuity in the IRA and transfer the net funds from the surrender to another IRA. As PeppermintPatty mentioned, though, you must check the fees that will be imposed by the insurance company for doing so. Many annuities impose onerous surrender fees that can last for a number of years from the date of purchase. Those fees may be so great that's it's better to keep the annuity until the surrender period runs out. You need to verify what would happen in your case.

As far as the TSA is concerned, that is more problematic. You almost certainly obtained that as part of an employer-provided retirement plan, probably a 403b plan. Depending on the terms of that annuity and whether you are still working for that employer, you might be able to surrender that annuity and transfer the net proceeds to an IRA as well. If you're still working for the employer who sponsored that plan, then almost certainly you cannot do so. You need to check the specifics of the plan to see what you may do with the TSA.

Regards..Pixy


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Author: cymbeline Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13758 of 75340
Subject: Re: Rolling annuities? Date: 9/6/1999 11:10 PM
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Thanks PP and Pixy,
Pixy replied:
As far as the TSA is concerned, that is more problematic. You almost certainly obtained that as part of an employer-provided
retirement plan, probably a 403b plan.

It was from teacher retirement my husband had contributed before he died which then came to me. My advisor created the TSA at that time. I entered the kingdom of the Fools at a propitious time since the surrender penalties have just run out. So this can be converted to an IRA?



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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 13765 of 75340
Subject: Re: Rolling annuities? Date: 9/7/1999 6:19 AM
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Franke writes:

<<It was from teacher retirement my husband had contributed before he died which then came to me. My advisor created the TSA at that time. I entered the kingdom of the Fools at a propitious time since the surrender penalties have just run out. So this can be converted to an IRA?>>

Yes, you should be able to do that. You took over the TSA money as the widow of the employee, and such money when part of a qualified retirement plan may be transferred to an IRA.

Regards..Pixy

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